RCF DAP tender gets offers of over 100,000 tonnes

17 November 2008 11:18  [Source: ICIS news]

LONDON (ICIS news)--Indian company Rashtriya Chemical & Fertilizers’ tender for 15,000-20,000 tonnes of phosphate fertilizers has solicited offers totalling more than 100,000 tonnes, highlighting the length of the current market, trader sources said on Monday.


The tender, for 15,000-20,000 tonnes of diammonium phosphate (DAP) for local blended fertilizer production, which closed on Friday 14 October, received six offers totalling nearly 120,000 tonnes.


Prices were not revealed but trader sources said prices were reported around $680-690/tonne CFR (cost and freight).


These prices were considered in line with current international prices as offered in the latest tender in Ethiopia but represented a major drop in Indian CFR prices from over $1,000/tonne in the last few weeks.


This was due to the combination of the global economic recession and a lack of demand in key markets such as Latin America, prompting numerous phosphate export companies to significantly curtail production in an attempt to balance the market. 


In the RCF tender, traders Gavilon (open origin) and Keytrade offered the precise amount, the latter possibly sourced from the US, while South Korean producer Namhae offered 20,000 tonnes.


Russian producer EuroChem offered 20,000 tonnes of product, although it was yet to be determined whether it had offered monammonium phosphate (MAP) or DAP.


Trader company Ameropa offered 20,000 tonnes of Russian MAP while Saudi producer Sabic offered 20,000 tonnes of DAP.


Delivery was variously for late November or December shipment.


RCF has a poor record in buying product following its tenders due to financial constraints, and traders doubted whether it would buy this time.


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By: Mike Nash
+44 20 8652 3214

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