The Trading Corp. of Pakistan closed its latest tender with offers lower than the last tender in July. Keytrade came in the lowest at $399.38/mt CFR for 50,000 mt. The company also made an optional offer of the same quantity at the same price. Keytrade won the July 29 tender with an offer of $419.39/mt CFR
In the latest tender, after Keytrade came Dreymoor and Helm. The two companies each offered 50-150,000 mt and were only cents apart. The Dreymoor offer was at $407.15/mt CFR and Helm at $407.41/mt CFR.
In the past, TCP would have had to accept the Keytrade offer and then call another tender to close in three to four weeks. The ruling body of TCP – Economic Coordinating Committee – however, granted TCP permission to negotiate with companies to see if they will match the lowest price offered in that tender.
If Dreymoor and Helm accept the Keytrade price, TCP would conclude its mandated purchase of 300,000 mt, leaving the market empty of any major urea buyers.