LONDON (ICIS)--The benchmark Tampa ammonia contract price has rolled over at $450/tonne (€329/tonne) CFR (cost and freight) for January loadings, market sources revealed on Thursday
The settlement between the Norwegian fertilizer giant and major customers like Mosaic was generally in line with market expectations, despite fresh price rises in the Black Sea.
Yara is understood to have pushed for a higher price at around $470/tonne CFR, but settled at the same level as this month due to flat demand in the US market.
Cargoes that load in Ukraine are normally priced around $75-80/tonne lower than the Tampa price to reflect freight costs to Florida.
However, that is not always the case, as illustrated by this latest settlement, with Yara today buying a combined 60,000 tonnes of Black Sea ammonia priced at around $416/tonne FOB (free on board) Yuzhny from producers Nitrochem and NF Trading.
Separately on Thursday, OCI Nitrogen agreed to pay iTrade $435-440/tonne FOB Yuzhny for NF Trading product for a 12,000-tonne cargo that will load on the LPG tanker the Prins Maurits in very late December or early January. The cargo will likely go to Israel.
The same vessel, which is time-chartered to OCI Nitrogen, was today loading 11,500 tonnes of Egyptian ammonia in Abu Qir for delivery to a customer in the Mediterranean after the Dutch company agreed a price of $425/tonne FOB with the producer.
OCI also confirmed it was today loading 15,000 tonnes on the Navigator Galaxy in Arzew from the $2bn Sorfert plant in Algeria after export licenses that had severely delayed loadings were finally granted by the government.
The cargo will go to Holland and the company hopes to load the same volume in early January as it looks to fulfil contract commitments throughout Europe.
Sorfert is understood to be planning to restart ammonia and urea production next week as it expects urea export licenses to be granted this weekend.
Local ammonia producer Fertial is also loading some cargoes following weeks of disruption caused by a controversial new export licensing process.($1 = €0.73)