01 June 2011 20:28 [Source: ICIS news]
HOUSTON (ICIS)--The contract price of benchmark US Tampa ammonia for all June shipments increased 1% from May, a source close to the negotiations said on Wednesday.
The settlement between Yara and its customers brings the contract to $570/tonne (€393/tonne) CFR (cost and freight), up $5/tonne from the $565/tonne May price.
Strong demand for ammonia from agricultural and industrial markets, along with tighter available supplies from Trinidad and the Black Sea region, were the major reasons for the price hike, a source said.
The National Gas Company in Trinidad had curtailed natural gas deliveries to all ammonia producers by 20% to 30% beginning on 13 February.
Natural gas deliveries were fully restored to ammonia producers last week.
High demand for ammonia for the production of diammonium phosphate (DAP) fertilizer is also pressuring ammonia supply in the US Gulf.
($1 = €0.69)
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections