The much-anticipated urea tender was called by MMTC Sept. 27. The tender will close Oct. 5 with offers to be valid through Oct. 12. Shipment is to be done by Nov. 19.
Sources said they do not expect to see a lot of Iranian material offered in the tender because of the U.S. sanctions against Iran. However, the tender documents do not preclude Iranian urea. The documents allow Iranian product to be offered with bills of lading from the UAE. International traders still raise questions as to how payment for the cargoes will be handled.
If Iran is excluded, traders expect to see Arab Gulf prices shoot to at least $350/mt FOB.