Pusri scrapped its granular urea tender over the weekend after bids failed to meet the lowest price Pusri would accept. The reference price was pegged at $420/mt FOB. The highest bid, however, came in at $405/mt FOB from Samsung. Subsequent bids were significantly lower.
Sources say Pusri will call a new tender soon. In the process of issuing the new tender, said one trader, Pusri will be able to propose a new floor for pricing. The trader added that no one will know that new level until the new tender closes and all bids are recorded.
This tender showed an average price of $394.75/mt FOB for the granular material. The average bid price for granular material in the tender that closed Jan. 20 was $402.92/mt FOB.
In the previous tender the highest bid did surpass the floor price. At that time Ameropa took the business at $422.25/mt FOB.
Sources say the bids reflect the softening global urea market. One trader noted that major buying for Asia will not pick up until the second quarter. Another concurred and added that soft demand from U.S. buyers is adding to the general malaise within the marketplace.