India’s recent fertiliser tender was confirmed at 650,000t on the basis of having left the load-out port by the second half June.
This volume is well down on the rumoured 1.75 Mt required, due to considerable resistance by manufacturers to meet the price levels set and traders not liking the newly introduced less favourable payment terms, according to ADM Agriculture. Another tender will now have to take place in the second half of June.
“Pricing was too low for Chinese urea to participate,” said Calum Findlay, ADM Agriculture’s head of fertiliser, writing in the firm’s latest market report.
“Most tonnage came from North African, Middle Eastern and Black Sea manufacturers, the traditional origins of European urea that are about to enter the market.
“Prices appear to be stabilising in the region after manufacturers cleared some stock. A weaker pound/dollar rate is affecting FOB values, adding additional support to values, which have now bounced US$5-6/t on the week.
“New-season ammonium nitrate prices are being discussed and cheap gas currently will probably influence an attractive start level. With an increased nitrogen market forecast next season with larger crop areas expected, we recommend planning ahead,” concluded Findlay.