India's MMTC awards 300,000 of urea under tender

28 August 2007 16:30  [Source: ICIS news]

LONDON (ICIS news)--Indian state trading company MMTC has issued awards for 300,000 tonnes following its recent urea tender, trading sources said on Tuesday.

 

MMTC received 11 offers, the lowest being from Trammo at $308/tonne (€225/tonne) CFR (cost and freight) Vizag and the highest at $360/tonne CFR Vizag or Tuticorin from Keytrade. 

 

Trammo’s offers at $308/tonne CFR and $309/tonne CFR, and Toepfer’s at $309.83/tonne CFR were over $30/tonne lower than the next trader offers.

 

MMTC has made three awards totalling 300,000 tonnes.

 

Saudi Basic Industries Corporation (SABIC) was awarded three lots of 25,000 tonnes at $286/tonne FOB (free on board) Al Jubail; Trammo was awarded 200,000 tonnes at $308/tonne CFR; and Toepfer was awarded 25,000 tonnes at $309.83 CFR with more under negotiation.

 

MMTC is also thought to be considering Ameropa’s offer of  Indonesian urea at $288/tonne FOB.

 

Negotiations are continuing with Qatar’s Qafco and UAE’s Fertil who offered between $290-297/tonne FOB.

 

However, Petrochemical Industries Company (PIC) withdrew its offer for 25,000 tonnes at $295/tonne FOB.

 

MMTC is expected to purchase another 100-200,000 tonnes of urea under the tender.

 

The awards issued so far, illustrate the firming urea market. Among the purchases in the last Indian tender at the end of July, IPL bought 275,000 tonnes from Middle Eastern suppliers at prices under $280/tonne FOB.

 

($1 = €0.73)

By: Carl Roache
+44 20 8652 3214

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