Indian sulphur offers up $40/tonne under tenders

20 August 2010 12:41  [Source: ICIS news]

LONDON (ICIS)--Two Indian fertilizer manufacturers have received offers under their sulphur purchase tenders at prices up nearly $40/tonne (€31/tonne) on last business, on the back of tight supply and soaring spot prices, market sources said on Friday.

Indian fertilizer manufacturer, Fertilizers and Chemicals Travancore Ltd (FACT), had received one offer under its 19 August tender.

The offer, submitted by trader Swiss Singapore, was at $173/tonne CFR (cost and freight). These levels were last seen in May this year. Prices have dropped since due to low demand from China, currently the world's largest import country.

FACT tendered for 20,000-25,000 tonnes of granular sulphur for delivery to Cochin 5-10 September.

Additionally, several offers were submitted under fertilizer manufacturer Paradeep Phosphates Ltd’s (PPL’s) 17 August tender.

According to market sources, the offers were above $150/tonne CFR, and PPL was in negotiations with Swiss Singapore, which participated in the tender.

PPL was looking for 40,000 tonnes of sulphur to be delivered to Paradeep 15-18 September.

The last business which concluded in India was at $135/tonne CFR, under a tender by Rashtriya Chemicals and Fertilizers (RCF) for 9,000 tonnes of sulphur for end-August shipment.

The jump in Indian offer prices was a response to the recent hike in FOB (free on board) prices in the Middle East to $140/tonne FOB, following two tender awards by Abu Dhabi National Oil Co (Adnoc) and Saudi Aramco.

Meanwhile, global sulphur supply was reported to be tight, lending support to the current price rally in the sulphur market.

($1 = €0.78)

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By: Freda Gordon
44 208 652 3214

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