MMTC India receives offers under first urea tender of 2014

12 March 2014 12:11 Source:ICIS News

LONDON (ICIS)--Metals and Minerals Trading Corporation of India (MMTC) on Wednesday closed a tender for an unspecified quantity of urea for shipment to India by 30 April, market sources said.

Traders 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 west coast India was submitted by Global Transnational at $325/tonne CFR (cost and freight) Mundra. Chinese origin was specified, but there are expectations that tonnes would in fact be shipped from Iran.

Global Transnational offered 205,000 tonnes firm and 105,000 tonnes optional.

The lowest offer for the east coast was submitted by Continental at $326.75/tonne CFR Krishnpatnam for Chinese origin urea.

Continental offered 65,000 tonnes firm and 65,000 tonnes optional.

The market is now waiting to see MMTC’s reaction to the tender offers later this week, sources said. The buyer may come back with counter bids, ask other traders to match the lowest offers, or possibly decide to purchase from the two lowest offers, they said.

By Rebecca Clarke