28 August 2012 06:09 [Source: ICIS news]
NAGOYA, Japan (ICIS)--Trading Corp of Pakistan (TCP) closed a highly anticipated urea purchase tender on 27 August, sources said on Tuesday.
TCP is hoping to secure 300,000 tonnes of imported urea, with shipment requested 14 days from opening the letters of credit.
Market participants were keen on the results of the tender because they expected the offer price to establish a benchmark in a fairly inactive urea market.
The lowest offer was submitted by global fertilizer trading house Keytrade at $399.38/tonne (€319.50) CFR (cost & freight) ?xml:namespace>
Keytrade offered a total of 100,000 tonnes, without specifying the origin of the cargoes.
The next lowest offer was submitted by Dreymoor at $407.15/tonne CFR Pakistan for a total of 200,000 tonnes, expected to be sourced in
Helm submitted the third lowest offer at $407.41/tonne CFR Pakistan for 200,000 tonnes of urea from
Other offers were at $407.69-419.63/tonne CFR
In a new move, TCP will be allowed to ask suppliers to match the lowest offer under this tender.
Previously, TCP had only been permitted to award the lowest offer under its tenders. Re-tenders were typically the lowest offer which often did not provide for the full quantity of urea required.
The new tender is expected to satisfy demand for the rabi crop season.
($1 = €0.80)
Additional reporting by Adele Zhu.
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