Middle East ammonia up $40/tonne in new spot sale

16 September 2010 13:52  [Source: ICIS news]

LONDON (ICIS)--Middle East spot ammonia prices have risen $40/tonne (€308/tonne) from last business following a sale out of Qatar amid limited supply, good demand and rising international prices, market sources said on Thursday.

Qatar Fertilizer Co (QAFCO) sold a 15,000-23,500 tonne cargo to trader Mitsui at $410/tonne FOB (free on board) for mid-October shipment from Mesaieed.

Last week the two parties had been negotiating a 10,000 tonne cargo at $400/tonne FOB.

However, Mitsui’s requirements increased and rising prices from other origins prompted QAFCO to raise its offer price, according to the producer.

Last spot business out of the Middle East was concluded at $370/tonne FOB between Iran’s Petrochemical Commercial Co (PCC) and Mitsui for a late-September cargo.

Middle East spot availability is limited, with the majority committed under contract, while at the same time demand from traders for shipment to the Far East and India is good, sources said.

At the same time, reports this week suggested that Yuzhny ammonia prices had moved above $400/tonne FOB up from reported business in the $380-385/tonne FOB range last week.

($1 = €0.77)

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By: Rebecca Clarke
+44 20 8652 3214

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