Ammonia prices up $5/tonne in Middle East on fresh sale

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.

Last business out of the Middle East was at $445/tonne FOB between Qatar Fertilizer Co (Qafco) and trader Mitsui for second half February shipment.

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.

Latest business out of Yuzhny was in the $460s/tonne FOB, but suppliers reported bids at up to $480/tonne FOB.

($1 = €0.72)

For more on ammonia visit ICIS pricing fertilizers
To discuss issues facing the chemical industry go to ICIS connect

By: Rebecca Clarke
+44 20 8652 3214

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