07 January 2013 16:04 [Source: ICIS news]
LONDON (ICIS)--Moroccan fertilizer producer Office Cherifien des Phosphates (OCP) is understood to have settled first quarter phosphoric acid prices with its joint venture partners in India at $770/tonne (€585/tonne) CFR (cost and freight) with 30 days' credit, market sources said on Monday.
The settlement is down from the $855/tonne CFR settlement announced in the fourth quarter of 2012.
Buyer price ideas were understood to have been around $750-760/tonne CFR, while OCP was heard to be targeting around $800-820/tonne CFR.
Other suppliers are now expected to follow suit. OCP's joint venture partners include Tata Chemicals, Zuari and Paradeep Phosphates.
The drop in price from last quarter was due to the weak phosphates market – a result of high existing stocks and domestic production.
Current DAP inventories in India are at 5m tonnes.
By Sylvia Traganida
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