Tampa price settlement acts as catalyst for ammonia spot sales

LONDON (ICIS)–The recent settlement of the Tampa ammonia contract price for May loadings at $320/tonne CFR (cost and freight) – up $10/tonne from April – formed the backdrop for brisk spot business on Friday in Europe, India, Africa, China and the Arabian Gulf.

The hike by Yara was in line with market sentiment and is already being seen by some US players as a potential platform for further increases during a strong spring planting season.

On the other side of the Atlantic, Trammo sold 23,400 tonnes to EuroChem priced under formula for late May delivery to Antwerp and was awarded at $310/tonne CFR under Petkim Turkey’s 25 April tender for 3,500 tonnes for end–May discharge at Aliaga.

East of Suez, Mitsui was the most active player, securing a combined 23,000 tonnes from two Arabian Gulf producers for May loading on the LPG tanker Gas Quantum, with the smaller cargo of 8,000 tonnes priced at $350/tonne FOB (free on board).

Also in the Middle East, Muntajat sold 12,000 tonnes of Qatari spot material to a former long term customer of Trammo in Madagascar for early May arrival, with the cargo netting back to $345/tonne FOB Mesaieed.

In India, Deepak purchased 8,000 tonnes of spot ammonia from Mitsui for second half May arrival at a formula price equivalent to $400/tonne CFR Jawaharlal Nehru Port (JNPT).

Elsewhere on the west coast, Fertilisers and Chemicals Travancore (FACT) issued its latest enquiry for 7,500 tonnes (+/- 5%) of spot ammonia for arrival at Kochi (Cochin) in May.

The tender is for a cargo for delivery by 20 May and closes on 2 May. The group’s tender that closed on 25 April for a cargo for delivery by 5 May, did not generate any offers.

In Asia Pacific, Koch will send the LPG tanker Clipper Orion to the region next month after all, where it will discharge 32,000 tonnes at Ulsan for Korea’s Lotte Fine Chemicals (formerly Samsung Fine Chemicals)

The US-based supplier is understood to have sold the vessel’s balance of 8,000 tonnes to Taiwan’s CPDC, although no price has been heard.

While Korean spot buyers sit on the sidelines for now, Mitsui was active in northeast Asia as it secured a formula-based sale to BASF in China for early June arrival at Caojing.