Indonesia’s Pusri closed a series of granular and prilled urea auctions April 20. Prices were markedly higher from the previous tender.
In the auction for two lots of 30,000 mt of Kaltim granular urea, only one lot was sold at $535.10/mt FOB to Liven. Sources said buyers have until April 21 to match that price for the second lot.
The prilled sales were for four lots of 10,000 each. Trada was awarded two lots at $509/mt FOB and $520/mt FOB. A third lot went to Fertcom at $516/mt FOB and a fourth to Quantum at $527/mt FOB.
The previous price paid to Pusri was $470/mt FOB. The new price range, say sources indicates a strong pricing signal for the Asian markets.
For buyers there is one small glimmer of hope that run away prices are not in the future. In the run up to the tender industry observers were predicting the prices would be in the $550s/mt FOB. The estimates came from sales and market talk out of the Arab Gulf, which put the price in the $590s/mt FOB.
The $535.10/mt FOB price paid by Liven indicates, to sources that while demand is strong, buyers are not willing to pay any price for the product.
The general assumption is that the granular tons will be sold to a buyer in Australia. The prilled product will most likely be sold to smaller regional Southeast Asia buyers.
Summary tables of auction
| Granular Urea Auction 30,000 mt | |
| Bidding Company | US$/mt FOB |
| Liven | 535.10 |
| Helm | 533.00 |
| Fertcomm | 531.00 |
| Feitra | 531.00 |
| Quantum | 530.00 |
| Interframe | 527.50 |
| Samsung | 525.00 |
| Brio Agrichem | 517.00 |
| Keytrade | 515.00 |
| Indevco | 515.00 |
| Ameropa | 508.00 |
| Toepfer | 505.50 |
| Prilled Urea Auction 10,000 mt Each Round | ||||
| Round 1 | Round 2 | Round 3 | Round 4 | |
| Bidding Company | US$/mt FOB | US$/mt FOB | US$/mt FOB | US$/mt FOB |
| Trada Trading | 509.00 | 511.00 | 520.00 | 520.05 |
| Helm | 508.00 | |||
| Universal Harvester | 503.00 | 5 | ||