29 March 2011 10:59 [Source: ICIS news]
LONDON (ICIS)--Indian fertilizer manufacturer Fertilizer and Chemicals Travancore Ltd (FACT) received three offers under its 29 March ammonia tender, market sources said on Tuesday.
The lowest offer was submitted by Kuwait’s Petrochemical Industries Co (PIC) at $538/tonne (€382/tonne) CFR (cost and freight).
Qatar Fertilizer Co (QAFCO) offered at $547/tonne CFR and Saudi Basic Industries Corp (SABIC) at $548/tonne CFR.
Offers are requested to remain valid until 5 April.
FACT last tendered for ammonia in November 2010, but the tender was scrapped due to reported problems with downstream production.
The tender comes at a time when the ammonia market is tight in the region east of Suez due to unstable production from the newly started Ma’aden plant in Saudi Arabia, a maintenance outage in Qatar and continued strong demand.
As a result, sources had expected offers to be above recent contract business in India in the $480s–490s/tonne CFR range.
($1 = €0.71)
For more on ammonia visit ICIS pricing fertilizers
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