MMTC Urea Numbers Show Drop in Market
The MMTC urea tender closed with 22 companies offering 2.8 million tons. The lowest West Coast price was from AgriCommodities at $289.80/mt CFR, while the lowest East Coast price was from Midgulf at $295.80/mt CFR. These prices compare with $333/mt CFR West Coast and $335/mt CFR East Coast.
The low for the West Coast has a netback to the Arab Gulf of $275-$276/mt FOB. The lowest price to the East Coast shows a netback to China of $280-$281/mt FOB. The MMTC offers pushed back against the low estimated netback from the TCP/Pakistan tender of last week.
Three Arab Gulf producers offered a total of 245,000 mt at $290-$293/mt FOB. These prices reflected the Arab producers pushing for higher prices from the generally accepted levels in the $280s/mt FOB.
In the run-up to the tender, only ADNOC of the UAE was reported to have any large quantities available for offer. Qatar and Bahrain each reportedly had about 80,000 mt available, with the Saudis and Oman both claiming they were sold out. The Omani material is reportedly reserved for Ethiopia, but questions about the ability of that Africa country to pay for the product might make the product available to India.