29 September 2011 21:28 [Source: ICIS news]
HOUSTON (ICIS)--The contract price of benchmark US Tampa ammonia for all October shipments increased by 10% from September, a source close to the negotiations said on Thursday.
The settlement between Yara and its customers brings the contract to $650/tonne (€481/tonne) CFR (cost and freight), up $60/tonne from the $590/tonne September price.
Strong demand for ammonia from agricultural and industrial markets, along with tight supplies and higher costs for imports, were responsible for the increase, a source said.
Rising costs for ammonia in Yuzhny, Ukraine, where recent deals done were for $590/tonne FOB (free on board) for October delivery, also contributed to the increase in the US Gulf.
The Tampa ammonia price will likely climb again in November as the latest sales reported in Yuzhny for November delivery hit $650/tonne this week, suggesting a price in Tampa for November of $710–720/tonne CFR.
($1 = €0.74)
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