25 June 2012 17:00 [Source: ICIS news]
LONDON (ICIS)--Trading Corporation of Pakistan (TCP) closed a purchase tender for urea on 25 June, which saw prices offered at lower levels in a weak market, trader sources said on Monday.
TCP tendered for 200,000 tonnes of urea for shipment within 14 days of opening letters of credit.
The lowest offer was submitted by trader Trammo at $411.77/tonne (€329.42/tonne) CFR (cost and freight). Other offers were submitted ranging between $421.89-488/tonne CFR.
The lowest price is $111/tonne less than what TCP paid under its 21 May tender, when trader Gavilon was awarded 100,000 tonnes at $522.86/tonne CFR.
No award has yet been made, but discussions are understood to be taking place, traders said.
Trammo offered 50,000-100,000 tonnes firm and another 100,000 tonnes optional. The origin will likely be China, Middle East, Yuzhny or Egypt, but the trader is currently considering its options.
The offer price reflects free on board (FOB) netbacks below last business from all origins.
Yuzhny last traded at $400/tonne FOB, but the offer implies a price in the $360s/tonne FOB. Meanwhile, implied netbacks in the Middle East and China are in the $380s/tonne FOB, whereas last business was in the $420s/tonne FOB and $450s/tonne FOB respectively.
The urea market has moved down over the past month on ample supply and lacklustre demand.
($1 = €0.80)
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