Rashtriya Chemicals and Fertilizers Ltd., called the first urea tender not from the three usual Indian buying houses. The Indian government granted RCF and NFL permission to import urea during the last quarter of this year.
The RCF tender was called Saturday, Oct. 7. The tender closes Oct. 14 with validity of offers until Oct. 24. Awarded cargoes must be shipped by Dec. 4.
Sources had earlier speculated Iran might be able to fulfill all of India’s needs for the rest of the year. India needs just a little less than 1 million tons to meet demand for the current season. Prices jumped $80/mt last month, putting pressure on the Indian treasury. Sources told Green Markets last week there is no indication prices will be coming off by the end of the year.
The price increase has attracted support from Chinese, Ukrainian and Arab producers. Each of these producers, however, are also not willing to push prices lower to ensure awards from India.