The Trading Corporation of Pakistan closed its last tender for the season by issuing a 50,000 mt award to Keytrade at $419.39/ CFR. The price is $7/mt lower than what TCP paid to CHS earlier this month. Nine companies participated in the tender with the highest offer at $447.39/mt CFR.
In the run up to this last tender, sources were expecting to see higher prices. In the end, the price was only higher than what IPL India paid in its tender.
The 50,000 mt closes the TCP buying authorized by the Pakistan government. The government wanted the trading house to bring in 300,000 mt to cover shortfalls in domestic production.
Pakistani producers complained that the only reason there was a shortfall in urea production was because of a government decision to divert natural gas from the industrial sector to the domestic use. In the period leading up to the first couple of tenders the producers argued they could cover the 300,000 mt needed for less than the imports if they were only provided the natural gas they need.
Of the 250,000 mt already ordered, TCP reports that 110,000 mt has arrived in the country and is on its way to regional distributors.