19 March 2012 14:16 [Source: ICIS news]
LONDON (ICIS)--Indian fertilizer manufacturer Fertilisers and Chemicals Travancore Ltd (FACT) has received offers more than $50/tonne (€38/tonne) higher than its last purchase under its latest ammonia tender, market sources said on Monday.
The lowest offer was submitted by trader Transammonia at $450/tonne CFR (cost and freight) for both parcels.
Offers were also submitted by Kuwait’s Petrochemical Industries Co (PIC) and Qatar Fertilizers Co (QAFCO) at $485/tonne CFR and $490/tonne CFR respectively.
FACT last purchased ammonia under its 22 February tender. An award was made to PIC at $396/tonne CFR and the cargo was delivered early this month on the Gas Oriental.
This price implied a netback to the Middle East of around $350/tonne FOB (free on board). However, since then FOB price indications have risen in the Middle East because of tight supply.
Latest spot business has been concluded at $370/tonne FOB Saudi Arabia, and producer price ideas are now above $400/tonne FOB in next business.
As a result, FACT was expected to face higher offer prices under this ammonia tender.
($1 = €0.76)
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