06 December 2011 11:06 [Source: ICIS news]
LONDON (ICIS)--Abu Dhabi National Oil Co (Adnoc) has announced a $15/tonne (€11.25/tonne) drop on its monthly sulphur official selling price for December to reflect weaker market sentiment, a company source said on Tuesday.
The new price is set at $205/tonne FOB (free on board) Ruwais, reflecting around $230/tonne CFR (cost and freight) in its applicable market, India.
“The decrease is to reflect recent market activity,” the source added.
Small sales into India last week were concluded in the low-$230s/tonne CFR, down from the last tender business at $239.70/tonne CFR under FACT's (Fertilisers and Chemicals Travancore) 2 November purchase tender. Also last week, one major buyer rejected offers in the $208–210/tonne CFR range, in anticipation of further price drops in the coming weeks.
The market had expected a drop, but market players say that the Adnoc price is still not reflective of actual market levels.
“[The new price is] as expected… about $10–15/tonne higher than the realistic market price,” said one India-based trader.
Adnoc’s November price was set at $220/tonne FOB, which failed to be established because sales in India that month took place in the $231–242/tonne CFR range.
($1 = €0.75)For more on sulphur visit ICIS pricing fertilizers
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