Results in the TCP urea tender came in below expectations. Ameropa came in with lowest offer at $346.11/mt CFR with Saudi material. Prior to the closing of the tender, industry sources expected prices to center on the low-$360s/mt CFR. In the end, four other offers of the total 10 also came in below $360/mt CFR.
The estimated netback of the Ameropa tons is just under $330/mt FOB, well below the $339/mt FOB price estimated from the Indian tender earlier this month.
Shipment is to commence within 30 days of issuing the letter of credit.
Pakistan called the tender after the government calculated it would fall short of urea supplies by about 400,000 mt this season. The remaining 300,000 mt is expected to be covered by increased domestic production. Rumors at the time the tender was called put the urea deficit closer to 600,000 mt, a number Pakistani officials dismissed as too high.