19 July 2010 12:30 [Source: ICIS news]
LONDON (ICIS news)--Indian fertilizer importers have closed a number of tenders for phosphate imports in the last few days but the nutrient-based subsidy (NBS) regime there (capping prices) is limiting offers and awards look some way off, fertilizer sources said on Monday.
In the latest round, governmental enterprise MMTC’s 14 July tender for 25,000 tonnes of diammonium phosphate did not receive any offers. It was not thought it received any offers under its 15 July tender for 25,000 tonnes of NPK (nitrogen, phosphate, potash) 20-20-0-13S (sulphur) plus 25,000 tonnes of 16-20-0-13S.
National Fertilizers Limited (NFL) received one offer from trader Ameropa under its 15 July tender for 100,000 tonnes of DAP. As NFL could not award on the basis of one offer, the offer was not opened.
NFL received a number of technical offers under its 16 July tender for 100,000 tonnes of NP/NPKs from Agora, Ameropa, Quantum, Balderton and others for both grades but prices had yet to be revealed.
Indian demand for phosphates has been insatiable in 2010, with DAP imports standing at well over 7.5m tonnes, up from 6m tonnes in 2009, with much of the increase thought due to a more transparent subsidy system which provides certainty for importers, encouraging more private importers into the market.
However, the NBS also caps DAP imports at $500/tonne (€385/tonne) CFR (cost and freight) which provides netbacks to most producers in the $430s/tonne FOB (free on board), significantly below where the market price is today in other export destinations, most notably Latin America.
This will limit interest given tight supply in the DAP market globally basis the contracted tonnage already committed into ?xml:namespace>
($1 = €0.77)
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