The MMTC urea tender closed Feb. 27 with about 1.2 million mt offered by 15 companies.
The lowest FOB offer came from Fertrade at $264.50/mt FOB for a delivered price of $274.50/mt CFR. The lowest delivered price came from Canopus and Transagri at $271.90/mt CFR. The FOB rates for the two companies were at $267.42/mt FOB and $271.92/mt CFR respectively.
Estimates in the run-up to the tender had landed prices in the low-$260s/mt CFR, based on Iranian cargo. Some traders had argued for the upper $260s/mt CFR and even low $270s/mt CFR, saying the Iranians would be pushing for higher prices.
Two producers – Fertil and Muntajat – offered tons at $265/mt FOB and $268/mt FOB, respectively. These prices would have a landed price about $280/mt CFR.
Industry sources said India needs about 1 million mt to adequately kick off the upcoming application season. The current reserves on hand are pegged at only 500,000 mt. Another tender could be called soon, one trader said earlier, if MTMC does not take at least 500,000 mt in this tender.