05 November 2010 16:49 [Source: ICIS news]
LONDON (ICIS)--Middle East ammonia prices moved downwards following a recent spot sale and offers in the latest Indian tender, but were still expected to remain fairly firm, market sources said on Friday.
Trader Transfert confirmed purchasing a 23,500 tonne Iranian spot cargo on behalf of Kisan International Trading at $382/tonne (€267/tonne) FOB (free on board).
The cargo would load on the Tobolsk in Iran on 9-13 November for shipment to India, sources added.
The lower price for the Iranian sale was attributed to the fact that there were now limited outlets for Iranian product due to trade embargoes.
Meanwhile, Qatar Fertilizer Co’s (QAFCO) offer under the recent Fertilizer and Chemicals Travancore Ltd (FACT) tender reflected $405/tonne FOB while the latest contract business into India from Iran nets back to $405-410/tonne FOB, sources said.
Prior to this, last done business out of Iran had been concluded at $420/tonne FOB, while latest spot business from the Middle East had been concluded at $430/tonne FOB.
Prices were usually expected to correct downwards seasonally at this time of the year as demand levels in India dropped off slightly.
At the same time, prices in Yuzhny were also moving lower and Middle East producers would not want their price levels too out of line with Yuzhny in order to avoid Russian and Ukrainian ammonia being attractive in Asian markets, sources added.
However, price levels were still expected to remain fairly firm as the supply scenario looked set to remain tight for the remainder of the year.
Middle East suppliers expected to have little spot availability over the next couple of months and were comfortable with contract commitments.
Additionally, maintenance work on plants in Iran and Indonesia in December would also reduce availability, sources said.
($1 = €0.70)
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