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.