India’s FACT scraps second ammonia tender on high prices

05 May 2011 11:54  [Source: ICIS news]

LONDON (ICIS)--Indian fertilizer manufacturer Fertilizer and Chemicals Travancore Ltd (FACT) has scrapped its 26 April ammonia purchase tender amid high offer prices, trader sources confirmed on Thursday.

FACT tendered on 26 April for 7,500 tonnes of ammonia for 15-20 May delivery to Cochin.

The lowest offer was submitted by trader Transammonia at $545/tonne (€365/tonne) CFR (cost and freight).

Market sources had widely expected the tender to be cancelled as the lowest offer was $7/tonne higher than the lowest offer received in FACT’s 28 March ammonia tender which was scrapped as offer prices were deemed too high.

Latest contract business in India has been agreed in the $510-515/tonne CFR range.

However, Indian prices are likely to rise following latest business out of the Middle East at $505/tonne FOB (free on board), which would imply prices in India around $540-550/tonne CFR.


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By: Rebecca Clarke
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