22 February 2013 12:38 [Source: ICIS news]
LONDON (ICIS)--The benchmark Tampa ammonia contract price has fallen by $30/tonne (€22.80/tonne) for March as a result of weaker market sentiment, continuing the recent downward price trajectory for another month, market sources said on Friday.?xml:namespace>
The settlement between Yara and its customers was agreed at $625/tonne CFR (cost and freight), down 4.5% from February’s price level of $655/tonne CFR.
The lower price had been widely predicted as buyers in countries such as India, Korea and Taiwan have drastically reduced their ammonia requirements because of seasonal factors and weak phosphate prices, which in turn has put downward pressure on contract and spot cargo prices from producers in the Arabian Gulf and Black Sea.
Oslo-headquartered Yara on Thursday agreed to buy 40,000 tonnes of Black Sea ammonia from producer NF Trading and 35,000 tonnes from Odessa Port Plant (OPZ) at $550/tonne FOB (free on board), down $20/tonne on previous business.
Those cargoes will load in the Ukrainian port of Yuzhny next month, with other major ammonia buyers such as Kansas-based Koch Industries expected to conclude talks in the next few days for up to 80,000 tonnes of ammonia from the Black Sea.
Ahead of the imminent spring application season in the US, Trinidad ammonia supplies have improved, with gas curtailments heard to be averaging around 10% so far this year, rather than the 20% rate experienced in late 2012.
($1 = €0.76)
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