Views: 9 Author: Site Editor Publish Time: 2021-12-02 Origin: Site
A large number of African procurement tenders are about to be carried out. The tenders for Côte d’Ivoire, Burkina Faso, Cameroon and Chad will end from now to mid-October. This will increase the nominal demand of 360,000 tons, but the timing and final quantity of the bid will be critical to affecting market sentiment. Ethiopia’s demand for 1 million tons of NPS may still be awaiting due to the political issues of the recent election results. There are reports that the Ethiopian delegation visited Morocco to finalize the government-to-government deal, but the seller categorically denied it.
In India, the NFL purchased 30,000 tons of 12-32-16 at a CFR price of less than US$580/ton, which is consistent with the previous pricing. Due to the insufficient supply of other grades of products, this year's imports are still much higher than last year. The high cost of MOP and urea may increase the import demand of nitrogen, phosphorus and potassium, thereby further affecting local production.
Market driving factors: First, the price of raw materials further strengthened. The price of urea in Egypt broke through the FOB mark of US$500 per ton for the first time since February 2013. In India, the latest MOP bid price is US$165/ton higher than the Indian contract price, prompting NPK producers to reconsider their pricing strategy. 2. Supply is tight. The expectation of Turkish NPK exports and the limited supply in Greece, Romania and Bulgaria mean that supply is tight.
Côte d’Ivoire issued a tender for 137,650 tons of 15-15-15+6S+1B, slightly higher than its 2020 tender.
30-60 day outlook: The demand in Africa and Europe is obvious. The Ethiopian tender will eventually appear. Coupled with the tight supply of NPK and strong raw material costs, it is difficult for prices to fall in the short term.
