Mideast ammonia prices up $10/tonne on Iranian sale

14 March 2011 13:58  [Source: ICIS news]

Ammonia is widely used as a fertilizerLONDON (ICIS)--Middle East ammonia prices have risen $10/tonne (€7/tonne) following a spot sale out of Iran amid tight supply and strong demand, market sources said on Monday.

A source at Iran’s Petrochemical Commercial Co (PCC) said it had sold a 15,000 tonne cargo to a trader at $470/tonne FOB (free on board) for end of March shipment.

This sale is $10/tonne higher than last business out of the Middle East and $15/tonne higher than last Iranian business.

The higher price comes as supply is restricted by a maintenance shutdown in Qatar and production problems in Indonesia.

Asian traders are looking to source Middle East tonnes to make up for a lack of availability from Indonesia, sources said.

Other Middle East producers are reportedly looking for prices in the $475-480/tonne FOB range in next business.

Saudi Basic Industries Corp (SABIC) is understood to have a late March/early April spot cargo available and is starting negotiations this week.

($1 = €0.72)

For more on ammonia visit ICIS pricing fertilizers

By: Rebecca Clarke
+44 20 8652 3214

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