01 July 2008 16:15 [Source: ICIS news]
LONDON (ICIS news)--The Indian Farmers’ Fertilizer Cooperative (IFFCO) has increased its counter bid by $10-15/tonne (€6-10/tonne) on last business in response to offers by fertilizer producers and traders in the firming international phosphate market, traders said on Tuesday.
Under its 27 June diammonium phosphate (DAP) tender, for which negotiations were continuing, IFFCO was reported to be countering offers in the $1,270s/tonne CFR (cost and freight) in the high-$1,260s/tonne.
This was an increase of $10-15/tonne on last bids at $1,255/tonne CFR.
“Importers had been hopeful that Chinese DAP supply would re-emerge in the second half of the year,” said one trader.
“However, there is now increasing acceptance now that this is not the case,” the trader added, referring to China’s recent decision to increase the duty on phosphate fertilizers to the point where exports had become virtually impossible.
The extra 100% export duty has removed 2.5m tonnes of phosphate fertilizers from global trade in the second half of 2008.
IFFCO, already facing falling domestic DAP production due to a lack of imported phosphoric acid from North Africa, was also understood to want to augment its DAP supplies through imports to meet commitments to its co-operative members.
The tender solicited responses from various traders and producers although offers were not formally opened.
However, trader sources said that IFFCO was understood to have already bought one US DAP cargo from its offshore trading arm, Kisan. Trader company ConAgra was reported to have offered US DAP at above $1,300/tonne CFR.
Another trader, Keytrade, had also offered US material while US export organisation Phosphate Chemicals Export Association (PhosChem) had offered DAP on a formula price basis.
($1 = €0.63)
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