Iran dominates Indian urea tender but prices offered higher than expected

Source: ICIS News


LONDON (ICIS)--The lowest price offered under Indian state-run MMTC Limited’s 1 August purchase tender for an unspecified quantity of urea was, as expected, from Iran, according to market sources.

A total of 1.85m tonnes were offered firm.

Of the final purchases, an estimated 550,000 tonnes is expected to be offered from Iran.

The lowest offer was at $274.80/tonne CFR (cost and freight) for the west coast port of Rozi from Eastern Commodities.

For the east coast, the lowest offer was at $278.95/tonne CFR from Comzest for the port of Gangavaram.

MMTC India Purchase Tender,
1 August 2018

Supplier/Origin ’000t firm Price ($/tonne CFR)/Port
Eastern Commodity/Middle East 45 274.80 Rozi
Comzest/Middle East 430 275 Rozi
278.95 Gangavaram
Transagri/Middle East 210 275 Rozi/Pipavav
Pace Global/Middle East 60 275 Rozi
MTPL 94 275.25 Mundra
Swiss Singapore 214 275.52 Pipava/Mundra/Adani
Midgulf 160 275.9 Adani
Fertrade 100 279.50 Mundra
Transglobe 50 280 Rozi
Aries 100 285.77 Mundra
Dreymoor 100 286.37 Gangavaram
Keytrade 50 289.45 Mundra
Amber 120 289.95 Kakinada/Krishnapatnam/ Gangavaram/Vizag
Ameropa 92 294.81 Pipavav
Total 1.855  

The price offered was at the higher end of market expectations.

Offer validity is until 8 August and cargoes are due to be shipped by 17 September.

Prices are $14-15/tonne higher compared to the last Indian tender at $259.97-264.90/tonne CFR when Indian Potash Limited (IPL) bought 1.1m tonnes under its 10 April tender.

MMTC is expected to buy as many tonnes as available, with offer validity due to expire on 8 August.