India's FACT scraps 7,500-tonne ammonia tender

20 October 2010 12:27  [Source: ICIS news]

LONDON (ICIS)--Indian fertilizer manufacturer Fertilizers and Chemicals Travancore Ltd (FACT) has scrapped its 6 October ammonia tender due to reported problems with its phosphoric acid production and high prices, market sources said on Wednesday.

FACT tendered for 7,500 tonnes of ammonia for late-October/early-November delivery to Cochin.

The tender attracted two offers, market sources said. The lowest offer was submitted by Qatar Fertiliser Co (QAFCO) at $455/tonne (€332/tonne) CFR (cost and freight). Trader Transammonia submitted an offer at $459.50/tonne CFR.

FACT requested that QAFCO extend the validity of its offer until 16 October, but no award was forthcoming.

Sources said that FACT has encountered problems with its phosphoric acid production and, as a result, could not take any new ammonia supplies.

Ammonia and phosphoric acid are raw materials for diammonium phosphate (DAP) production.

It was not clear when the issues might be resolved or when FACT might tender for ammonia again.

Sources also noted that QAFCO’s offer was $83/tonne higher than FACT’s last purchase, and the higher price may also have put the buyer off.

FACT last purchased ammonia from Transammonia in early September at $372/tonne CFR.

($1 = €0.73)

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By: Rebecca Clarke
+44 20 8652 3214

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