The Trading Corp. of Pakistan changed the terms for the urea tender that closes July 17.
The new terms require companies offering tons in the tender to quote only one price for all Pakistani ports instead of different rates for different ports.
In the last tender, the lowest offer from Toepfer was designated for Gwandar port. The TCP tender review committee ruled that Toepfer had not fulfilled the terms of the tender by specifying the port of discharge. The committee awarded a contract to Transammonia. It was then overruled, Toepfer was awarded the tender but then Toepfer declined the award.
In order to avoid any future problems, TCP altered the July 17 tender documents to make it clear that the offered price would be for any port of the buyer’s choice.
The move comes in an already unusual tender.
TCP was given dispensation from the normal 30-day notice period to allow it to buy up to 300,000 mt as soon as possible. Also, the minimum offer requirements were moved up from the normal 50,000 mt to 75,000 mt.
Sources commented when the tender was announced that TCP apparently wanted to get its purchases secured before the Indians call another tender and possible heat up the market.