MMTC India buys over 1m tonnes of urea under 12 March tender

20 March 2014 16:21 Source:ICIS News

LONDON (ICIS)--Metals and Minerals Trading Corporation of India (MMTC) has purchased just over 1m tonnes of urea under its 12 March tender for an unspecified quantity of the product, market sources said on Thursday.

Of the total, around 500,000 tonnes is understood to be for delivery to west coast India, with the balance for delivery to the east coast.

Around 200,000 tonnes are expected to be supplied from Iran, with the remainder from China, sources said.

The awards have been heard as follows:

·         Global Transnational: 60,000 tonnes + 60,000 tonnes Mundra/Kandla
·         CTPL: 130,000 tonnes Krishnapatnam/Mundra
·         Quantum: 60,000 tonnes + 60,000 tonnes Gangavaram/Kakinada
·         Amber: 50,000 tonnes + 60,000 tonnes Kakinada/Vizag
·         Transglobe: 120,000 tonnes west coast India
·         Liven: 70,000 tonnes Vizag
·         Swiss Singapore: 70,000 tonnes Krishnapatnam
·         Helm: 60,000 tonnes Karaikal
·         MTPL: 60,000 tonnes Kakinada
·         ETA: 60,000 tonnes Kandla
·         Aries: 50,000 tonnes New Mangalore
·         Fertisul: 50,000 tonnes Paradeep

Traders had offered a total of 2.06m-2.09m tonnes of urea firm under the tender, while another 780,000-800,000 tonnes were offered on an optional basis.

The lowest offer for the west coast was at $325/tonne CFR (cost and freight) and for the east coast at $326.75/tonne CFR.

There is talk in the market that traders were looking to place as much urea as possible in India as it is unclear when India will return to the market given that elections will take place in May.

By Rebecca Clarke