26 January 2012 15:52 [Source: ICIS news]
HOUSTON (ICIS)--The contract price of benchmark US Tampa ammonia for all February shipments fell by 15% from January following a drop in the Yuzhny price, a source close to the negotiations said on Thursday.
The settlement between Yara and its customers brings the contract to $472/tonne (€359/tonne) CFR (cost and freight), down $83/tonne from the $555/tonne January price.
A significant factor in the decrease in the price of ammonia in the US Gulf is the lower price in Yuzhny, Ukraine, where recent sales have occurred in the area of $405/tonne FOB (free on board), a market source said.
Other factors affecting the price include weaker demand for downstream diammonium phosphate (DAP) and lagging demand for ammonia from the industrial sector.
Several market analysts said the February price of $472/tonne CFR Tampa should represent a bottom for the ammonia market as strong demand for ammonia, DAP and other fertilizers is anticipated for the 2012 US corn planting season.
US farmers are projected to plant 92m-94m acres of corn in 2012, possibly surpassing the 93m-acre record set in 2007.
($1 = €0.76)
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