US import ammonia price up $55/tonne on spot purchase

20 August 2010 17:10  [Source: ICIS news]

LONDON (ICIS)--Import ammonia prices in the US have jumped following a spot purchase $55/tonne (€43/tonne) above the Tampa contract price for August, reinforcing expectations that September's Tampa price will rise sharply, market sources said on Friday.

US phosphates producer PotashCorp (PCS) purchased a 12,000 tonne cargo of Omani ammonia from trader Trammo at $435/tonne CFR (cost and freight) Tampa, a company official said.

The tonnes will be delivered to Tampa in mid September on the vessel Telendos.

Discussions for the September ammonia contract price in Tampa are due to get underway soon. Early ideas had pointed to a large increase following rises in the Yuzhny ammonia price.

Latest business in Yuzhny at $365/tonne FOB (free on board) would reflect a Tampa price around $425-430/tonne CFR based on freight indications of $60-65/tonne.

However, sources expected suppliers to target $430/tonne CFR Tampa as a minimum price.

The Tampa price for August was agreed at $380/tonne CFR, up $25/tonne from July.

Freight from the Middle East to Tampa is estimated at $80-100/tonne which would reflect a net back around $335-355/tonne FOB. Latest spot business in the Middle East was concluded at $345/tonne FOB.

($1 = €0.78)

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By: Rebecca Clarke
+44 20 8652 3214

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