The Trading Corp. of Pakistan closed its urea tender Jan. 9. The company awarded 50,000 mt to Transfert at $417.50/mt CFR immediately. Other offering companies were asked to match the Transfert offer by noon Jan. 10.
The difference between the Transfert and next closest offer was about $14. Sources said from the outset it would be unlikely if any of the companies accepted the Pakistan bids.
By close of business Jan. 10 it was clear that no other firm stepped up. Another open-ended tender was called to close Jan. 17.
The urea from the just-closed tender is in addition to the material Pakistan will buy from Sabic under a government to government development aid loan. The Saudi government is providing US$100 million to purchase about 250,000 mt.
Sources estimate the netback on the Transfert deal backs up reports of a stable to strengthening market. An Arab Gulf equivalent price for the Transfert tons is about $400/mt FOB. The Yuzhnyy/Black Sea equivalent is about $365/mt FOB.
There were rumors last week that TCP would push back the tender until the end of the month. Those rumors led to concern that the global urea price would halt its tentative rebound.
The new tender calls for a minimum of 50,000 mt per offer but does not specify the full quantity desired.
Table follows
| Offering Company | Source | MT (‘000) | Price US$/mt CFR | |
| Firm | Option | |||
| Transfert | Open | 50 | 25 | 417.50 |
| CHS/open | Open | 50 | 50 | 431.90 |
| Koch | Open | 50 | 431.98 | |
| Dreymoor | Open | 50 | 50 | 432.45 |
| Incitec/Qatar | Qatar | 50 | 50 | 434.50 |
| Agrifert | Ukraine – Russia – China | 50 | 439.64 | |
| Helm | Open | 50 | 443.90 | |
| 50 | 455.00 | |||
| Transammonia | Open | 50 | 50 | 446.17 |
| Toepfer | Middle East – China – CIS – Vietnam | 50 | 446.41 | |
| Keytrade | Open | 50-75 | 449.00 | |
| Emmsons | Arab Gulf – China – Indonesia – Vietnam – Egypt | 50 | 449.91 | |