India’s FACT issues new ammonia purchase tender

27 October 2011 15:27  [Source: ICIS news]

LONDON (ICIS)--Indian fertilizer manufacturer Fertilizer and Chemicals Travancore Ltd (FACT) has issued a new ammonia purchase tender, market sources said on Thursday.

FACT will close a tender on 1 November for 7,500 tonnes of ammonia for 10-15 November delivery to Cochin. Offers are requested to remain valid until 7 November.

FACT last tendered on 12 September and received one offer, from Qatar Fertilizer Co (QAFCO), at $605/tonne (€436/tonne) CFR (cost and freight).

The tender was subsequently scrapped as the buyer deemed the price too high.

Since then, contract prices in India have risen to around $590-610/tonne CFR.

However, Middle East spot prices have risen to $589/tonne FOB (free on board) in last business and offers in the FACT tender are expected to be in the $640-650/tonne CFR range.

Traders think this tender will also be scrapped given the high offer prices expected.

($1 = 0.72)

For more on ammonia visit ICIS pricing fertilizers

By: Rebecca Clarke
+44 20 8652 3214

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