Flurry of ammonia spot sales sealed in Europe, Asia Pacific

LONDON (ICIS)–A string of ammonia spot sales in Europe saw around 88,000 tonnes sold for April and May arrival at various ports, but attention remains focused on the US and the imminent settlement of the Tampa contract price for May loadings.

Sentiment is that the benchmark will climb by around $10/tonne from this month’s figure of $310/tonne CFR (cost and freight) to reflect firming demand from the US agricultural sector as corn and soyabean plantings start to pick up pace.

In the Black Sea, Ameropa sold 23,400 tonnes of Russian spot ammonia to IFFCO/Kandla priced under formula for first half May arrival in west coast India.

The cargo will likely net back to the $270s/tonne FOB (free on board) Yuzhny – a range at which Trammo is heard to have bought a combined 15,000 tonnes from various producers for prompt lifting from the Ukrainian port.

In Turkey, Gemlik sold 12,000 tonnes to Yara for mid-May loading and dismissed speculation it had purchased 23,400 tonnes from Trammo for arrival the same month.

Bagfas is chasing 10,000 tonnes for mid-May discharge, with Petkim set to close a tender shortly for 3,500 tonnes.

Elsewhere in Euope, BASF’s Belgian unit acquired 5,500 tonnes of Polish spot material from OCI for late April arrival and 8,000 tonnes from Yara for first half May delivery.

Both cargoes were sold at market price, with talk the buyer has also secured a second OCI cargo of 8,000-11,000 tonnes – likely to be sourced from Borealis’ plant at Rouen in France – for first half May arrival.

Yara also secured 6,000 tonnes of Russian spot material from Ameropa for late April lifting from the Estonian port of Sillamae.

For the fourth time in three weeks, India’s Fertilisers and Chemicals Travancore (FACT) issued a purchase tender after rejecting the only offer submitted under its 14 April tender for 7,500 tonnes (+/5 %) of spot ammonia for second half April arrival.

It now requires a similar volume at Kochi (Cochin) in early May, but Arabian Gulf producers such as SABIC and Muntajat are not expected to offer as both say they have no spot availability due to plant shutdowns and existing contract commitments.

Against the backdrop of looming plant shutdowns in Indonesia, there was also plenty of spot business in Southeast Asia.

Indonesia’s PT Cheil Jedang CJ awarded its recent tender to local supplier Petrokimia Gresik at just under $400/tonne CFR

Trammo bought 7,000 tonnes from PIM, which it sold to PETRONAS – along with a further 8,000 tonnes – so the Malaysian producer could cover an old CFR spot sale to Koch.

That deal freed up 16,500 tonnes of PETRONAS product for sale to CIFC, with the trader deciding to send the cargo to contract client PPL/Paradip in east coast India in early May.