Iran urea tender shows $10/tonne fall in prices

03 March 2008 14:59  [Source: ICIS news]

LONDON (ICIS news)--Offers in the latest Iranian tender show prilled urea prices in the Middle East have weakened nearly $10/tonne (€7/tonne) since last month because of lower demand, market sources said on Monday.

 

ASSC Iran closed a tender on Saturday 1 March for 60,000 tonnes of prilled urea for April-May shipment.

 

Three offers were received, the lowest from Helm for 30,000 tonnes at €279.50/tonne CFR (cost and freight).

 

This offer, likely to be backed by the United Arab Emirates’ Ruwais Fertilizer Industries (Fertil), reflects a price in the low $370s/tonne FOB (free on board) Ruwais after freight, costs and trader margin.

 

The most recent prilled urea sales from the Arab Gulf to Sri Lanka last month netted back around $380/tonne FOB.

 

The next lowest offer in the ASSC Iran tender came from FSGT, backed by Qatari urea producer Qafco, for 30,000 tonnes at Qatari riyals (QAR) 1,467/tonne ($403/tonne) FOB, followed by Unifert offering 30-35,000 tonnes of Russian product at €310/tonne CFR.

 

ASSC Iran is expected to announce awards in the coming days.

 

($1 = €0.66)

($1 = QAR3.64)

By: Carl Roache
+44 20 8652 3214

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