India MMTC urea bidding situation

India's MMTC for urea bid on 1th, Dec, and the latest shipping schedule is 6th, Jan. They received 13 supplier quotes, totally of nearly 2.44 million tons. The lowest price, west coast Dreymoor at CFR 284.77 USD/ ton for 200,000 tons, and east coast Swiss Singapore CFR 286.5 USD / ton on the for 92,000 tons.

There are nearly 383,000 tons of goods which are lower than CFR290, and the others are between CFR290-300. (The last round of East Coast US$279.25/ton.    Meanwhile,the last round of total 3.56 million tons, a total of 16 suppliers).

The freight of east coast is 15USD/ton,.China FOB price was calculated 1700MRB/ton. It deducted freight, profit, theoretical reference value, exchange rate 6.56, excluding port miscellaneous, the arrival price is 1700 RMB/ton. Accounting Shandong factory is 1610-1640 RMB/ton, Hebei small bag factory is around 1650 RMB/ton, Inner Mongolia is in 1480-1530 RMB/ton, Xinjiang is expected to less than 1,300 RMB/ton. The theoretical calculation is significantly lower than the current domestic level. It also lower than the export orders in last week. This price is lower than China’s domestic price, and the supply quantity is expected to be limited.Therefore, it should continue to track the final volume.