India's FACT issues new ammonia tender

29 September 2010 15:35  [Source: ICIS news]

LONDON (ICIS)--India's Fertilizers and Chemicals Travancore Ltd (FACT) has issued a new ammonia purchase tender amid firmer prices, market sources said on Wednesday.

FACT is tendering for 7,500 tonnes of ammonia for 29 October-2 November delivery to Cochin.

The tender will close on 6 October and offers are requested to remain valid until 13 October.

FACT last purchased ammonia under its 1 September tender at $372/tonne (€275/tonne) CFR (cost and freight) from trader Transammonia.

The award to Transammonia had been widely expected as their offer was $40/tonne lower than offers submitted by Middle East producers, which had been based on prices in the $370s/tonne FOB (free on board).

However, since then FOB prices in the Middle East have risen and sources expect FACT to face much higher offers under this tender.

Qatar Fertilizer Co (QAFCO) recently sold a mid-October spot cargo to trader Mitsui at $410/tonne FOB.

Meanwhile, Iranian producer Petrochemical Commercial Co (PCC) is in negotiations with traders for a late October spot cargo and is targeting a price of $420/tonne FOB.

($1 = €0.74)

For more on ammonia visit ICIS pricing fertilizers
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By: Rebecca Clarke
+44 20 8652 3214

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