17 October 2012 16:20 [Source: ICIS news]
LONDON (ICIS)--The first sale of November ammonia out of the Black Sea suggests 2012 prices may have peaked, with major producer NF Trading selling a 40,000 tonne cargo to US-based Koch Industries at $650/tonne (€501/tonne) FOB (free on board), sources said on Wednesday.
The cargo, which will load on the LPG (liquefied petroleum gas) tanker Clipper Orion for the US in early November, is priced at the same level as October loadings, and follows recent hikes caused by strong demand and tight availability.
Finland-headquartered NF Trading produces around 120,000-130,000 tonnes of ammonia a month and is understood to be close to clinching similar sales with other buyers.
Natural gas curtailments of up to 40% in key ammonia producing country Trinidad, combined with major plant turnarounds in the Black Sea and robust demand – particularly from Asia – have driven Yuzhny prices up $50/tonne since mid-August.
Earlier this month, the contract price of benchmark US Tampa ammonia for all October shipments jumped $10/tonne to $715/tonne CFR (cost and freight).
($1 = €0.77)
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections