The State Trading Corp. of India called a urea tender today. The tender will close June 18 with validity of offers to last until June 25. The STC tender call came earlier than many expected. Expectations are that STC will buy at least 1 million mt. One trader said STC may take even more if the price is right.
Shipment must be completed by July 31. Sources have said earlier that the opening of the Chinese export window July 1 would mean any Indian tender should allow as much time as possible in July for product loadings.
According to the documents posted on the STC website (http://www.tenders.gov.in/viewtenddoc.asp?tid=del664503&wno=1&td=TD), the tender will operate under a 2-Bid System. Companies participating in the tender must provide a sealed envelope with technical and commercial information. The second envelope is to include the actual price and quantity being offered.
Companies offering Iranian product will have to include the necessary marine insurance in its offer. Insurance for material from all other sources will be covered by STC.