Sources report that Indonesia’s Pusri settled its auction of 30,000 mt of granular urea with Indevco at $345/mt FOB. An optional sale of 30,000 mt was rejected. The price reflects a $20 bump in the selling price from Indonesia at a time when the rest of the urea market is softening.
One source speculated this purchase will be for a regional buyer. Many of the end users of Indonesian urea are usually often in the local area. They are also often willing to pay a few dollars more for the product because of its quality and ease of shipping.
The auction came just as MMTC/India announced a tender to close March 12. Area observers say the price paid in this auction is too high for the tonnage to be part of any serious offer to MMTC.