20 November 2007 11:56 [Source: ICIS news]
LONDON (ICIS news)--Indian state trading house MMTC Limited has scrapped its latest sulphur tender after receiving an offer more than $100/tonne (€68/tonne) higher than at what it was authorised to buy at, market sources said on Tuesday.
MMTC tendered on 14 November for 3 x 15-18,000 tonnes of sulphur for 22-25 November, 2-6 December and 23-27 December delivery to Cochin on behalf of Indian fertilizer manufacturer Fertilizers and Chemicals Travancore Limited (FACT).
The tender attracted offers from traders Swiss Singapore at $370/tonne CFR (cost and freight) and another from Transfert at an undisclosed formula price.
The tender was subsequently scrapped as MMTC had only been authorised by FACT’s board to make a purchase at $240/tonne CFR, sources said.
The tender came amid a surge in spot sulphur prices due to booming sulphur demand in China, with consumers increasingly concerned with security of supply, added to very little spare sulphur availability globally.
($1 = €0.68)
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