ICIS to change UAN Nola methodology

LONDON (ICIS)–ICIS is to change the methodology for the urea ammonium nitrate (UAN) FOB (free on board) Nola price assessment from 9 January 2020, following discussions with the market.

The UAN FOB Nola price will be assessed using FOB or delivered business from Nola, or in the absence of business bids and offers for Nola barges, as well as netbacks from upriver terminal sales at Cincinnati.

The quote will always include a Nola price indication and Cincinnati netbacks.

Terminal sales in Cincinnati will be netted back to Nola using a fixed freight/throughput cost which will be reviewed once a year.

This will stand at $30/short ton from the start of 2020. There is no minimum volume for sales from Cincinnati.

When FOB or delivered barge sales take place for shipment from Nola, these will be included in the range.

In the absence of FOB or delivered sales, bid/offer levels at Nola will be used instead.

The mid-point between the best bid and best offer will be used as the Nola price indication.

ICIS will reserve the right to discount bids or offers not deemed reflective of the market.

Bids and offers received will be listed in the weekly ICIS The Market report. The minimum volume for sales, bids and offers is 1,500 short tons.

The same principal will be used for terminal business.

The methodology will be applied in conjunction with the overarching methodology applied to ICIS price quotes.

(Clarification: recasts start date in opening paragraph)