Yuzhny ammonia up $15-20/t on limited availablity, strong demand

10 September 2010 11:15  [Source: ICIS news]

LONDON (ICIS)--Yuzhny ammonia prices have risen $15-20/tonne (€12-16/tonne) from last business and are expected to rise further moving into October on the back of limited availability and strong demand, market sources said on Friday.

Business is reported to have taken place at $380-385/tonne FOB (free on board) for late September/early October shipment from Yuzhny.

Last reported business was at $365/tonne FOB for September shipment.

However, suppliers are looking to raise prices above $400/tonne FOB for October cargoes, with one producer claiming to have received bids above this level already and there are expectations that $400/tonne FOB level will be concluded soon.

Yuzhny availability will be reduced by at least 50,000 tonnes in October due to a maintenance turnaround at Russian producer Rossosh. The producer is expected shut down operations in late September and the outage is due to last around a month.

At the same time, demand from the US and North Africa is likely to remain strong, sources said.

US import demand is expected to remain strong through October, with the fall application season due to start in mid October. There are some 80,000-120,000 tonnes of Yuzhny ammonia scheduled to be shipped to the US in September, the highest volume in months, and a Ventspils cargo may also be shipped there.

Meanwhile, phosphates demand is strong at present and as such North African producers are maximising production and therefore have extra ammonia requirements, sources added.

($1 = €0.79)

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By: Rebecca Clarke
+44 20 8652 3214

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