India’s GSFC seeks revised DAP offers

Indian importer GSFC has asked for revised offers under its 9 April tender to buy 50,000t of DAP.

Three trading firms made initial offers and are now negotiating with GSFC. GSFC wants their revised offers submitted by 18 April.

The firm had sought offers for 25,000t of natural-coloured DAP and 25,000t of coffee-coloured/brown DAP for May arrival at Mundra/Kandla on India's northwest coast. The lowest offer was around $542/t cfr.

GSFC will now accept shipment in May with arrival after the end of the month.

DAP prices in India have fallen from the mid-$590s/t cfr in early March as the resumption of Chinese exports encouraged trading firms to offer their lowers in successive tenders.

But Indian DAP buying has been limited to state-owned importers. The private sector has stayed on the sidelines while prices remain above the breakeven level of around $509/t cfr, given the DAP nutrient-based subsidy of 21,676 rupees/t for April-September and the maximum retail price of Rs27,000/t.

Recent DAP spot offers from trading firms have been as low as around $540/t cfr India.

By Tom Hampson