GNFC gets just one bid in India DAP tender

16 July 2008 13:17  [Source: ICIS news]

LONDON (ICIS news)--India’s Gujarat Narmada Valley Fertilizers Co (GNFC) has received just one offer - at $1,281/tonne - under its phosphate fertilizer tender which closed on 15 July, trader sources confirmed on Wednesday.

GNFC received the offer from Dubai-based trader company Kisan International at $1,281/tonne CFR (cost and freight) for 50,000 tonnes of diammonium phosphate (DAP).

The origin of the material was believed to be Russia.

“GNFC’s current buying price ideas are lower, so they might well defer,” said one trader.

“We continue to talk with them so there is definitely firm interest for tonnage,” the trader added.

GNFC last tendered for DAP in April, but key personnel changes at the company were cited as one reason why no subsequent purchase was made.

However, trader sources intimated that a more likely cause for the lack of a deal was the high prices of DAP offered.

India has so far imported more than 3.5m tonnes of DAP during 2008, but healthy monsoon rains and low domestic production have boosted import demand to an estimated 4m tonnes this year, traders said.

($1 = €0.63)

By: Mike Nash
+44 20 8652 3214

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