28 July 2010 14:55 [Source: ICIS news]
LONDON (ICIS)--Indian fertilizer manufacturer Fertilizers and Chemicals Travancore Ltd (FACT) has made an award under its latest ammonia tender at a price $19/tonne (€15/tonne) higher than its last purchase, market sources said on Wednesday.
Sources said FACT had made an award to Qatar Fertilizer Co (QAFCO) at $360/tonne CFR (cost and freight) under its 22 July tender.
FACT tendered for 7,500 tonnes of ammonia for first week August delivery to ?xml:namespace>
However, after negotiations a price $5/tonne lower was agreed, sources said.
FACT’s last purchase was made in late June from SABIC at $341/tonne CFR. QAFCO will load the ammonia on the Almajedah in Qatar 31 July-1 August for delivery to FACT.
The producer estimates a netback of around $330/tonne FOB (free on board) based on freight indications of around $30/tonne. However, other sources indicate freight in the mid-$30s/tonne which would imply a netback in the mid-$320s/tonne FOB.
($1 = €0.77)
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