01 September 2010 14:11 [Source: ICIS news]
LONDON (ICIS)--Indian fertilizer manufacturer Fertilizers and Chemicals Travancore (FACT) has received four offers under its 1 September ammonia tender, with the lowest offer up $12/tonne (€9/tonne) on its last purchase, market sources said on Wednesday.
FACT tendered for 7,500 tonnes of ammonia for 18-22 September delivery to Cochin.
The lowest offer was submitted by trader Transammonia at $372/tonne CFR (cost and freight).
However, this offer was well below offers from Middle East ammonia producers Kuwait Petrochemicals Industries Co (PIC), Qatar Fertilizer Co (QAFCO) and SABIC, which were in the $412.90-415/tonne CFR range.
Middle East producers said their offers were based on a free on board (FOB) price of around $375/tonne, with freight indications at $30-35/tonne.
Offer prices were expected to be higher than FACT’s last purchase at $360/tonne CFR as Middle East spot prices have risen since then.
However, prices were expected to be more in line with the offers from Middle East producers following reports last week that an Iranian cargo was being discussed at $370-380/tonne FOB.
Market sources expressed some surprise at the low level of Transammonia’s offer and questioned where they could source ammonia cheap enough to make this shipment viable.
An award is likely to be made in the next week, sources said.
($1 = €0.79)
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