Indian fertilizer importer NFL has issued a tender to buy 80,000t of DAP.
The tender closes on 24 June with shipments wanted by the end of July — 30,000t to the east coast and 50,000t to the west. Offers are to be valid until 2 July.
The importer's 17 June tender for 100,000t of DAP attracted just one offer, said to be in the mid-$540s/t cfr, against which it is reported to have counter-bid lower. It also closed a tender on 31 May for the same amount but did not make an award.
India is entering its peak import period for DAP but successive tenders have failed to garner much product.
The current maximum retail price (MRP) and subsidy mean any DAP bought above $510/t cfr incurs a loss for the importer. The last done deal was in the mid-upper-$520s/t cfr but private-sector importer interest is thin at these prices.
China is the main regional DAP supplier and it has pushed fob prices higher into the $540s/t fob on sales to southeast Asia. Such prices are unworkable unless India raises its MRP or introduces a special subsidy on DAP.
By Mike Nash
