Kaltim closes 5,000 tonnes ammonia sales tender in Indonesia

13 June 2012 03:34  [Source: ICIS news]

NAGOYA (ICIS)--Indonesian fertilizers producer Kaltim closed a sales tender for 5,000 tonnes ammonia on 12 June, having received bids that were 3-5% lower than its previous tender, a trader said on Wednesday.

Kaltim offered the ammonia for July shipment and received bids at $612/tonne (€490/tonne) FOB (free on board) Indonesia from Fertcomm; $601/tonne FOB from Unigas, and; $600/tonne FOB from Brio.

It is not clear whether Kaltim will award the tender to the highest bidder, or will scrap the tender and re-tender at a later date in hopes of attracting higher bids, as ammonia prices are on an upward trend in Asia .

In a previous tender, which closed on 31 May, Kaltim sold 10,000 tonnes to Indevco at $630/tonne FOB Indonesia for prompt loading in Bontang. Indevco sold the cargo immediately to Japanese trader Mitsubishi at a reported $632/tonne FOB Indonesia .

Mitsubishi will load the Kaltim cargo on the vessel Antwerpen, with the balance of the cargo loading from the Kaltim Parna Industry (KPI) plant in Bontang. The vessel is heard to be loading on 20-22 June and will go to Korea or Taiwan, Japan and Thailand.

Ammonia contract prices climbed from $570-580/tonne CFR (cost and freight) Taiwan on 31 May to $590-600/tonne CFR Taiwan on 7 June on tight regional supply and healthy demand.

($1 = €0.80)

By: Gabriela Wheeler
+65 6789 8828

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