25 January 2011 16:21 [Source: ICIS news]
HOUSTON (ICIS)--High demand and production shortages will likely result in a higher price for ?xml:namespace>
Negotiations for the February Tampa ammonia contract between Yara and its clients Mosaic and CF Industries were ongoing this week, and market watchers suggested the price could settle $35-45/tonne (€26-33/tonne) higher than the $475/tonne CFR (cost and freight) Tampa January contract.
High demand this spring in the
Meanwhile, ammonia supply to the US Gulf has been strained by a nearly month-long outage of a 525,000 tonne/year Yara ammonia plant in
Sources indicated that Yara’s Tringen 1 plant in Point Lisas could be back in production by the end of this week.
Yara would probably like to settle at $525/tonne based on recent sales of ammonia in
But buyers Mosaic and CF were likely pursuing a figure closer to $500/tonne.
A consensus among market watchers was that the February Tampa contract would settle in the range of $510-520/tonne CFR.
A settlement for February was expected to be reached by the end of this week.
($1 = €0.73)
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