03 February 2011 14:33 [Source: ICIS news]
LONDON (ICIS)--Ammonia prices have risen another $5/tonne (€3.60/tonne) in the Middle East in fresh business out of Saudi Arabia and the UAE amid strong demand and limited spot availability, market sources said on Thursday.
Saudi Basic Industries Corp (SABIC) sold 6,000-8,000 tonnes to trader Nitrochem at $450/tonne FOB (free on board) for late February shipment from Jubail.
Nitrochem is also finalising a similar quantity from Ruwais Fertilizer Industries (Fertil), reportedly at the same price, for early March loading.
The cargo is expected to be shipped to either Tunisia or Belgium.
Higher prices for new business had been expected given the current strong demand and limited supply scenario.
Nitrochem usually operates west of Suez, but is understood to have made the purchase as demand in the west is strong, Middle East prices are currently lower than Yuzhny values and also because it is due to move a new vessel from Korea to the Black Sea during February, which will now load the cargo in the Middle East.
($1 = €0.72)
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