LONDON (ICIS)--Major ammonia market players are focused on negotiations over next year’s supply contracts rather than spot business, with only a few spot deals concluded.
Large buyers in South Korea, China and Taiwan are preparing to advance talks with manufacturers and traders over their requirements for 2021.
In the spot market, Trammo was active in Indonesia and Libya, securing 15,000 tonne cargoes of Panca Amara Utama (PAU) and Lifeco volume.
The former was sourced on a formula-priced FOB (free on board) basis from PAU's exclusive marketing partner, Mitsubishi, and the latter from Libya's National Oil Corporation at a confidential FOB price.
Trammo also appears to have sold CFR (cost & freight) spot cargoes into India and Brazil for October/November discharge, but details are awaited.
This left the only confirmed CFR business as Hexagon’s 10,000 tonne sale to Moroccan phosphates major OCP, and Borealis' similar-sized purchase from EuroChem for a cargo already discharged in northern France.
Algeria’s Sorfert will have reduced spot volume for the next month as its export-oriented unit at Arzew has commenced a 30-day turnaround that will remove around 60,000 tonnes from the market.
No production issues or capacity cuts were heard elsewhere, with the market looking balanced for the rest of this year following the idling of three large plants in Trinidad during the past few months.