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India's NFL closes tender to buy urea, offers in

  • Mercados: Fertilizers
  • 29/08/24

Indian fertilizer importer NFL has closed its tender to buy urea today, with initial unconfirmed feedback pointing to lowest offers at around or slightly below $340/t cfr west coast.

NFL will evaluate and open technical offers on 30 August, with an expectation that prices will be officially revealed early next week. NFL has requested a shipment window from load ports up to 31 October.

The lowest offer price, if confirmed, would reflect netbacks of around low-mid $320s/t fob Middle East and $280/t fob Baltic, accounting for freight rates and other costs.

Indian appetite for fresh urea imports is strong, despite considerable inventories, driven by a strong monsoon. Participants expect that NFL could purchase at least 1mn t of urea under this tender. Rainfall rose by 7pc from the long-term mean since the start of June, which has buoyed domestic offtake. Urea sales to consumer could hit as high as 5mn t this month, up from 4.68mn t in August last year.


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