15 August 2012 12:55 [Source: ICIS news]
LONDON (ICIS)--Ammonia prices in the Black Sea region have increased after NF Trading and Mitsui agreed a spot deal at $630/tonne (€510/tonne) FOB (free on board) Yuzhny, a $30/tonne hike on previous Yuzhny business, market sources said on Wednesday.
The 23,000-tonne cargo will load in the first half of September and head to Asia, with India understood to be the most likely destination.
The spot sale, which comes after two months of stability at $600/tonne FOB Yuzhny, will alarm buyers given the robust demand and limited September availability because of plant turnarounds.
The producer says it will be targeting the same price for further September business.
Plant turnarounds in Ukraine will reduce availability, with NF Trading expecting its September availability to be halved to around 60,000-70,000 tonnes, while natural gas curtailments in Trinidad of 20% and 30% for August and September, respectively, are also hurting supplies.
Ammonia output in the Middle East remains lower because of production issues at two Qatar Fertilizer Company (Qafco) plants, and this tight supply situation prompted Mitsui to look for a cargo in Yuzhny for shipment to Asia.
Prior to this spot deal, some European ammonia producers suggested prices could climb to $610/tonne FOB Yuzhny for September, with any hike likely to have an upward impact on price levels in the US Gulf, which currently stand at $690/tonne CFR Tampa for August deliveries.($1 = €0.81)
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