India deal brings urea purchases to 400,000 tonnes

30 August 2007 15:33 [Source: ICIS news]

LONDON (ICIS news)--India’s MMTC has agreed two more urea sales taking the country’s purchases under its recent tender to 400,000 tonnes, market sources reported on Thursday.

The Indian state trading company has just agreed to purchase 25,000 tonnes from United Arab Emirates’ Fertil at $288/tonne FOB (free on board) Ruwais with a further 25,000 tonnes as a seller’s option at the same price.

MMTC also agreed to buy 25,000 tonnes from Qafco at $288/tonne FOB Messaied but rejected an offer to buy an additional 25,000 tonne cargo from the Qatar producer at a higher price.

The company’s tender for an undisclosed quantity of urea closed on 24 August. It received 11 original offers, ranging from $308/tonne CFR (cost and freight) to $360/tonne CFR.

Earlier this week, MMTC awarded producer Saudi Basic Industries Corp (SABIC) three lots of 25,000 tonnes at $286/tonne FOB Al Jubail and trader company Trammo 200,000 tonnes at $307/tonne CFR.

Also this week, trading company Toepfer sold two lots of 25,000 tonnes to MMTC at $309.83/tonne CFR Vizag and 25,000 tonnes at $315.13/tonne CFR Paradeep.

MMTC may also accept Ameropa’s offer of Indonesian urea at $288/tonne FOB but this could not be confirmed.

Indian fertilizer demand outstrips domestic supply. As a result, the Indian government imports large quantities of urea through two trading agencies, MMTC and Indian Potash Limited (IPL).

Indian buyers will soon start to demand more urea for October shipment.

By: Carl Roache
+44 20 8652 3214

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