02 February 2009 11:59 [Source: ICIS news]
LONDON (ICIS news)--Russian phosphate fertilizer was most competitively priced, with levels more than $100/tonne lower than other offers under the Ministry of Agriculture’s 200,000 tonne tender that closed on 30 January, Ethiopian trader sources confirmed on Monday.
The tender, for diammonium phosphate (DAP), attracted four offers. Trader companies Ameropa and Yara were understood to have both offered 100,000 tonnes each of Russian product. Ameropa offered at $436/tonne CFR (cost and freight) for the first lot and $448/tonne CFR for the second.
Yara offered at $450/tonne CFR for its first delivery and $472/tonne CFR for its second.
Both traders were expected to be awarded the tender within the week, traders said.
Jordan Phosphates Mine Company (JPMC) offered 200,000 tonnes at around $550/tonne CFR, while trader company Midgulf also offered the full amount at around $600/tonne CFR. Product origin of Midgulf’s offer was unknown, said sources.
Russian producers were awarded more than 200,000 tonnes under Ethiopia’s last DAP tender at the end of 2008 and were understood to be adopting an aggressive pricing strategy to sell tonnes forward, with traditional markets in Latin America and Europe exhibiting lacklustre demand.
The World Bank is funding the Ethiopian DAP tender.
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