22 February 2012 16:02 [Source: ICIS news]
LONDON (ICIS)--Indian manufacturer Fertilisers and Chemicals Travancore (FACT) received two offers under its 22 February ammonia purchase tender, market sources said on Wednesday.
FACT closed a tender on Wednesday for 7,500 tonnes of ammonia for 1-5 March delivery to Cochin. The lowest offer was submitted by Kuwait’s Petrochemical Industries Company (PIC) at $396/tonne (€297/tonne) CFR (cost & freight), sources said.
Qatar Fertiliser Co (QAFCO) also made an offer, at $405/tonne CFR, they added.
The offers are requested to remain valid until 24 February.
Saudi Arabia’s SABIC and Transammonia are understood to have told FACT they regretted being unable to take part in the tender.
At the start of February, United Arab Emirates-based trader Kisan sold a 15,000 tonne spot cargo of Saudi ammonia to Indian Farmers Fertiliser Cooperative (IFFCO) at $377.50/tonne CFR.
Subsequently, trader Raintrade, of Turkey, sold a 12,000 tonne cargo of Iranian ammonia to IFFCO at $287.50/tonne CFR.
But phosphoric acid contracts in India having settled is lending support to ammonia demand and prices. Offers under FACT’s tender have not slipped as low as latest spot business, but are more in line with recent contract prices around $400–410/tonne CFR.
($1 = €0.75)
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