Right after MMTC bought more than 1 million mt at lower than expected prices, STC called a urea tender to close June 22. The short time between the calling of the tender and its closing – only five days – came against the backdrop of an early monsoon and a better-than-expected planting season. In addition, the fact that MMTC only took 1 million mt when it had the opportunity to buy more, means the global market still has an oversupply of urea, say sources.
Sources who looked at the MMTC awards commented at the time that a subsequent tender could see even lower prices.
Like MMTC, STC added a requirement in the tender documents that companies offering Iranian material will have to be responsible for all insurance costs. Insurance for product coming from any other source will be covered by STC. In addition, STC is requiring each offering company to specify the source of its offered tons as well as the proposed discharge port. Validity for the offers must last until June 28. This would give STC plenty of time to negotiate for a large quantity.