STC urea tender shows higher prices
The STC urea tender closed Wednesday, Nov. 16, with more than 2 million mt in firm offers and prices about $40/mt higher than the previous tender. The lowest offers came from Transagri and Global at $244.10/mt CFR, most likely with Iranian tons. These offers represent a jump of $41/mt from the most recent tender.
All told, 19 companies offered tonnage. One trader commented the tender represented a lot of people tossing in offers that are unworkable. The counter bids from STC are expected by Friday.
The China-equivalent price comes to just under $230/mt FOB. While last week’s business in China was pegged in that range, sources said producers have been holding out for prices closer to $235-$240/mt FOB for granular and a few bucks less for prills.
In the run up to the tender, sources said the price will determine how many tons STC will take in the end. Reportedly, India still needs about 1 million tons to close out the buying season.
For more details on the tender, see the Nov. 18 issue of Green Markets.