23 September 2013 13:37 [Source: ICIS news]
MONTREAL (ICIS)--The October benchmark Black Sea ammonia price has rolled over at $450/tonne (€333/tonne) FOB (free on board) after leading producer NF Trading confirmed on Monday that it sold its first Yuzhny cargo at the same price as its final September cargo.
The Finland-headquartered company sold 20,000 tonnes to iTrade for loading in the Ukrainian port of Yuzhny, with 10,000 tonnes due to load in the first half of the month and 10,000 tonnes in the second half of the month.
Speaking on the sidelines of the annual conference of The Fertilizer Institute (TFI) in Montreal, a senior NF Trading executive said while it had hoped to achieve a price of $460/tonne FOB, weak downstream conditions in the urea and phosphates sector meant it opted to accept the lower price.
The company, which sold the bulk of its September cargoes at $440/tonne FOB Yuzhny, also reiterated it currently has no plans to restart its Ukrainian ammonia production units which were shut down several weeks ago in a bid to force a floor to falling prices.
Buyer iTrade has yet to confirm the destination/s for the volume, but the product will most likely head to somewhere in the Mediterranean. The cargoes will load on the LPG tanker the Prins Maurits.
Earlier this month, Norwegian fertilizer giant Yara settled the key monthly Tampa ammonia price at $485/tonne CFR (cost and freight) for September loadings, up by $15/tonne from August's price level of $470/tonne CFR.
Latest Yuzhny business would reflect a US Gulf price of $520-530/tonne CFR based on freight costs of $70/tonne for a large-sized vessel (40,000-tonne capacity), but it remains to be seen what level the Oslo-headquartered company and its customers agree when the next round of talks concludes in the second half of September.
($1 = €0.74)
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