STC tender results

After looking over the numbers, sources say the best STC can hope for is 500,000 mt unless more suppliers are willing to lower their offering prices.

Asian sources say the most likely scenario to be worked out this week will be $309.90/mt CFR into East Coast ports and $312.50/mt into West Coast ports.

If the predictions come true, after this tender, India will still need at least another 1.5 million mt to complete the application season. Sources say any future tenders will end up showing higher prices.

The Chinese export window closes at the end of the month, leaving only the tons in bonded warehouses by that time available for export. Other sources of urea – Yuzhnyy, Iran and the Arab producers – all have higher pricing ideas.

The STC tender results showed that prices are moving up.

Even though Chinese led with the lowest prices in this tender, the Iranians held out for a few dollars higher.

Adding to the upward pressure on prices are tenders coming up by Bangladesh for 100,000 mt and a series of tenders from Pakistan for a total of 500,000 mt. The Bangladesh tender comes on the heels of a series of smaller tenders – 50,000 mt each – that have pulled some of the excess tons from Chinese ports. The Pakistan tenders call for delivery of the material by the end of the year.

Transammonia sent its regrets and did not participate in the tender.

Three companies Dragon Fertilizers, Dreymoor, and FertTrade were disqualified. The combined offers from the three companies totaled 220,000 mt but STC did not reveal the offering prices.