Bangladesh closed two tenders for 25,000 mt each for granular urea to different ports. In both cases, Chinese urea dominated the offers. The lowest offers showed a marked improvement in netback prices to China. The lowest offer in the tender destined for Mongla came out of the UAE at $339/mt CFR for a netback of $310.90/mt FOB. The best offer destined for Chittagong came from Aires Traders at $336.31/mt CFR for a netback of $310.31/mt FOB.
Each of these netback prices is higher than recent postings. The posted Green Markets price was $285-$300/mt FOB.
Sources are unsure how much of an impact this tender will have on the September 26 MMTC/India tender. Bangladesh has often commanded a better netback because of the relatively small quantities of its purchases – 25,000 mt at a time – compared to the hundreds of thousands of tons bought by India at one time.