Iran dominates Indian urea tender but prices offered higher than expected

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
ADNOC/UAE	30	280 FOB
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.