India Potash Ltd receives urea offers, issues counter offers

07 December 2009 15:26  [Source: ICIS news]

LONDON (ICIS news)--Indian Potash Ltd (IPL) has received firm offers totalling 610,000-815,000 tonnes of urea under its 5 December tender and has issued counter offers to participants in the tender, market sources said on Monday.

Indian Potash tendered for an unspecified quantity of urea for shipment up to 15 January, but is expected to procure 700,000-800,000 tonnes, according to market sources.

Offers were requested to remain valid until 8 December, sources said.

The lowest offer was submitted by trader Keytrade at $319.50/tonne (€214/tonne) CFR (cost and freight) for 50,000-60,000 tonnes for shipment to Mundra.

Trader Agora offered 130,000-200,000 tonnes at $321/tonne CFR for shipment to Kandla or Vizag.

The highest offers came in at $349/tonne CFR, sources said.

Sources added that the lowest offers were around $275/tonne FOB (free on board) Yuzhny, before margins, while Middle East producers had offered at $315/tonne FOB.

Indian Potash has now issued counter offers to participants at $300/tonne CFR Mundra, $302/tonne CFR Kandla and $305/tonne CFR Vizag, some $16-19.50/tonne below the lowest offers received under the tender.

Indian Potash has asked for a response from participants by the close of business on 8 December, sources said.

($1 = €0.67)

For more on urea visit ICIS pricing fertilizers
See John Richardson’s Asian Chemical Connections Blog
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By: Rebecca Clarke
+44 20 8652 3214

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