Indonesia prilled urea firm on high freight costs

27 November 2007 13:48  [Source: ICIS news]

LONDON (ICIS news)--Indonesian prilled urea prices have remained firm around $330/tonne (€221/tonne) due to the ongoing high freight costs of Chinese product, recent sales tenders showed on Tuesday.

 

Kujang recently closed a sales tender for 8,000 tonnes of prilled urea for December shipment. Intisarwaboga took the award at $330/tonne FOB (free on board) bagged Tanjung Priok.

 

Earlier in the month, Kujang closed a sales tender for 15,000 tonnes of prilled urea and awarded to PT Graha Curah Niaga at an equivalent of $333/tonne FOB Tanjung Priok bagged for November shipment.

 

Back in October, Indonesian prilled urea prices were $10-13/tonne lower than November values.

 

Chinese prilled urea is traditionally a strong competitor of southeast Asian product.

 

However, traders said the high freight costs applicable for Chinese urea makes Indonesian product more attractive, even though priced higher.

 

Traders had estimated that freight from China to some southeast Asian destinations could be as high as $40/tonne.

 

The high-quality reputation of Indonesian urea in some southeast Asian markets was also considered a possible factor.

 

($1 = €0.67)

By: Carl Roache
+44 20 8652 3214

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