10 January 2013 13:17 [Source: ICIS news]
LONDON (ICIS)--Nitrochem has signed an annual supply agreement with Indian Farmers Fertiliser Co-operative (IFFCO) that will see up to 80,000 tonnes of Russian ammonia shipped to India in the first quarter of 2013, a company source said on Thursday.
The Clipper Mars will load 40,000 tonnes in Yuzhny around 27-28 January for delivery to IFFCO/Paradeep, though it may also discharge some volume at IFFCO/Kandla.
The vessel will then return to the Black Sea at the end of February, or early March, and load another 40,000-tonne cargo for IFFCO/Paradeep.
Both cargoes will be priced under formula and quantities for the remaining quarters of the year have not yet been finalised.
Rocketing ammonia prices east of Suez have in recent months prompted Asian Pacific buyers to source spot cargoes from the Black Sea where price rises have been more gradual and currently stand at $600/tonne (€462/tonne) FOB (free on board) for January loadings.
Nitrochem sells and distributes around 140,000-150,000 tonnes of ammonia each month from Togliatti, with the vast majority of cargoes loading in Yuzhny, Ukraine, and the remainder in Ventspils, Latvia.
The Switzerland-headquartered firm usually sends around 50,000 tonnes of ammonia a month to BASF in Belgium and a combined 70,000 tonnes a month to two major phosphate producers in North Africa.
Tunisian phosphate manufacturer Groupe Chimique Tunisien (GCT) receives an average of one 23,400-tonne ammonia cargo a month from Nitrochem, while Morocco’s Office Cherifien des Phosphates (OCP) normally receives two similar-sized cargoes per month from the supplier.
($1 = €0.77)
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