Indian Potash urea tender expires, counter offers not accepted

09 December 2009 11:38  [Source: ICIS news]

LONDON (ICIS news)--The urea purchase tender issued by Indian Potash Ltd has expired as bidders failed to take up its counter offers, market sources said on Wednesday.

Indian Potash tendered on 5 December for an unspecified quantity of urea for shipment up to 15 January 2010.

The company received a range of offers, with the lowest at $319.50/tonne (€217.26/tonne) CFR (cost and freight) Mundra.

However, Indian Potash chose to counter offer at $16-19.50/tonne below the lowest offers received under the tender, depending on the port of discharge.

Indian Potash asked for a response from participants by the close of business on 8 December, but then extended it to 9 December after only two bidders initially responded.

The tender subsequently expired with no buyers willing to accept the prices offered by Indian Potash, market sources said.

It is unclear if, or when, Indian Potash will issue another tender.

Some traders speculated that Indian Potash will issue a tender within the next 10-15 days.

($1 = €0.68)

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By: Carl Roache
+44 20 8652 3214

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