India’s FACT awards ammonia tender at $372/tonne

06 September 2010 15:28  [Source: ICIS news]

LONDON (ICIS)--India's Fertilizers and Chemicals Travancore Ltd (FACT) has made an award to trader Transammonia at $372/tonne (€290/tonne) under its 1 September ammonia tender, market sources said on Monday.

The award, on a cost and freight (CFR) basis, had been widely expected after Transammonia submitted an offer some $40/tonne lower than other suppliers.

FACT closed a tender on 1 September for 7,500 tonnes of ammonia for 18-22 September delivery to Cochin. Four offers were submitted under the tender, with the lowest offer from Transammonia at $372/tonne CFR.

Middle East producers Kuwait’s Petrochemical Industries Co (PIC), Qatar Fertilizer Co (QAFCO) and SABIC offered at $412.90-415/tonne CFR.

Prices had been 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 and was subsequently sold at $370/tonne FOB.

The deal is $12/tonne higher than FACT’s last purchase at $360/tonne CFR, with a higher price expected on the back of rising Middle East free on board (FOB) values since its last tender.

($1 = €0.78)

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By: Rebecca Clarke
+44 20 8652 3214

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