STC urea tender attracts surprisingly big response

08 April 2008 09:36  [Source: ICIS news]

LONDON (ICIS news)--India’s State Trading Corp (STC) attracted a larger than expected response from producers and traders following its latest urea tender but it remains unclear how much urea will actually be purchased, local sources said late on Monday.

 

STC issued the tender for an unspecified quantity of urea to be supplied under long-term, formula-based contracts. It requested offers, valid to 21 April 2008, for shipment dates April 2008 to March 2009.

 

It is estimated that around 1.25m tonnes is required over a one-year period.

 

STC had asked for a formula based on the average lows of publications, over a three-week period, minus a discount. However, the 11 companies which submitted offers, proposed different formulae to this.

 

As a result, it is unclear how much will be bought under this tender.

 

India has a large purchasing plan for 2008. In addition, to STC’s tender, Indian Potash Limited (IPL) is expected to issue a tender mid-end April for up to 650,000 tonnes of urea for April-May shipment.

 

If STC does not procure the targeted amount of tonnes, it is likely that IPL will buy more.

 

These two tenders follow the purchases of India’s MMTC under its 12 March tender.  In total under this tender, around 625,000 tonnes of urea were bought from various origins including China and the Middle East.

By: Carl Roache
+44 20 8652 3214

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