MMTC tender closes
The MMTC tender closed Sept. 17 with the higher prices expected by all. Most prices were in the $309-$312/mt CFR range with a few outliers.
The shock for some sources, however, came from Barrychem. The firm offered 68,000 mt at $302.77/mt CFR for delivery to Krishna or Gangavaram. The other offers from Barrychem were in the range of the other offers. The low-ball price may be rejected. The tender documents gives MMTC the authority to reject any offer without giving a reason.
Sources say it would be difficult for other traders to match the Barrychem offer, especially after taking a financial pounding in the IPL tender last month.
The rapid rise in Chinese prices forced many traders to take large losses or default on their awards from IPL. Those that could not fulfill their contracts faced possible banning from future urea tenders.
Just before the tender closed, MMTC issued an addendum to the documents that did indeed ban one company and put the future of three others in doubt because of their actions in the IPL tender.
Deebaj was banned from any further tenders. The future status of Continental Traders, Emmsons and Dreymoor is still being discussed.
See the Sept. 22 issue of Green Markets for more details.