India delays October DAP tenders

06 October 2008 10:55  [Source: ICIS news]

LONDON (ICIS news)--Rashtriya Chemicals & Fertilizers’ (RCF) tender for 145,000 tonnes of phosphate fertilizers has been postponed from 6 to 17 October, sources said on Monday, amid reports that other Indian buyers had purchased 300,000 tonnes of imported product.

 

The volume of diammonium phosphate (DAP) required under RCF’s tender was also downgraded to 85,000 tonnes.

 

MMTC, who would have participated in RCF’s tender, also deferred its own tender for an unspecified quantity of DAP to 16 October, sources at the company said. The tender was originally scheduled to close on 3 October.

 

The decision to defer comes at a time when the Indian Farmers’ Fertilizer Cooperative (IFFCO) was widely reported to have bought 300,000 tonnes of DAP in the last 72 hours, thought to include three cargoes of Russian product purchased at $975/tonne CFR (cost and freight) plus DAP from various other sources.

 

One trader source described MMTC’s tender as “inconsequential [now]”, given both its failure to purchase product under previous tenders, and IFFCO’s subsequent purchasing.

 

India is now thought to have bought 4.5m tonnes of DAP for the 2008-09 season, almost all of it imported through Indian Potash Ltd (IPL) and IFFCO, the two most financially sound and commercially viable importers of phosphate fertilizers in India.

 

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By: Mike Nash
+44 20 8652 3214

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