31 May 2012 19:56 [Source: ICIS news]
LONDON (ICIS)--Saudi Arabian ammonia producer SABIC on Wednesday agreed to a 15,000-tonne spot deal with Japanese trader Mitsui at $617/tonne (€500/tonne) FOB (free on board), company sources confirmed.
The deal represented a $47/tonne hike over the last concluded spot business out of the Middle East.
The cargo is expected to be for early June shipment, but no further details were immediately available from either party.
The deal comes amid a period of strong global demand for ammonia and tight supply due to fierce competition for cargoes.
If ammonia prices in the Middle East continue to rise, downstream manufacturers in Taiwan and Korea may reduce operating rates or shut down production temporarily as conditions in the chemical and industrial segments remain weak and margins are deteriorating.
($1 = €0.81)
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