India’s FACT issues 7,500-tonne ammonia tender amid rising prices

26 August 2010 12:20  [Source: ICIS news]

LONDON (ICIS)--Fertilizers and Chemicals Travancore Ltd (FACT), the India-based fertilizer manufacturer, has issued a tender for 7,500 tonnes of ammonia amid expectations that prices in India are due to rise, market sources said on Thursday.

FACT will close the tender on 1 September, with delivery to Cochin for 18-22 September, according to sources.

Offers have been requested to remain valid until 8 September.

FACT last bought ammonia from Qatar Fertilizer Co (QAFCO) under its 22 July tender at $360/tonne (€284.40/tonne) CFR (cost and freight), which reflected around $330/tonne FOB (free on board) Qatar.

However, since then Middle East spot prices have risen, with Iranian ammonia sold last week at $345/tonne FOB.

At the same time, Yuzhny ammonia prices have risen to $365/tonne FOB; as a result, Middle East prices are expected to rise further.

Indeed, an Iranian cargo for second-half September shipment is reportedly being discussed at $370-380/tonne FOB.

($1 = €0.79)

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By: Rebecca Clarke
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