Indian urea inventories hit around 6.9mn t at the end of October, marking a second monthly build since August, as imports climbed after multiple tenders and production picked up.
The rising stocks are bridging a gap to levels a year ago, with inventories at 7.8mn t and 6.8mn t at the end of October and September last year, respectively. Stocks had slipped as low as 3.5mn t at the end of August this year.
Stocks rose by a net 2.12mn t in October, with domestic production of 2.68mn t and imports of 1.6mn t outstripping local sales of 2.33mn t, the latest provisional data show.
Production of 2.68mn t was the highest since the start of 2024, while sales were stable on the year.
Imports of 1.6mn t mark a slight slip from record receipts of 1.94mn t in September, but remained comfortably above typical monthly levels. Imports have jumped in recent months following a quick succession of state-backed buy tenders, with Indian firms lining up 6mn t of urea across four tenders in July-October.
Market participants are anticipating another buy tender to be floated by Indian importer and supplier IPL in the coming weeks, while RCF will close a long-term buy tender on 1 December.
