OCP wins Ethiopia tender for 2019-20

This week, Ethiopia's EABC awarded OCP with an annual NPS tender, but only for batches for the 2019-2020 crop year. The tender initially required close to 3 million tons of various NPS varieties to be delivered in the next three crop years. The total demand in 2019-20 is 888,000 tons, which is more than 150,000 tons more than OCP provided to EABC in 2018-19. The contract will likely support OCP's product line throughout the first half of 2020, providing it with popular pricing support. In the months prior to this, falling raw material prices, delayed bidding in Africa, and reduced demand in Europe forced OCP to cut prices sharply.

Challenging market conditions have driven Russian prices down this week, with 15-15-15 matching FOB Baltic prices falling by $ 10 / ton to $ 210-240 / ton. In addition, Acron's sales to Southeast Asia in November, including 15-15-15 and 16-16-16, cost and freight prices were 345-360 US dollars / ton, a price reduction of 15 US dollars per ton from October prices.