Indian MOP stocks continued to draw down in July because of strong domestic sales and ongoing low imports resulting from the delayed signing of a new Indian contract, which was only settled in early June.
Indian MOP stocks were around 850,000t as of 1 August, down by 17pc from 1.03mn t on 1 July and almost 30pc lower than 1.2mn t on 1 June. Stocks at the start of August were also down by around 250,000t, or 22pc, compared with a year earlier.
Sales of MOP under the government's direct benefit transfer system in July increased by 37pc on the year to 248,400t, provisional government data show. Cumulative sales for this fertilizer year, which began in April, now total 705,200t, up by 43pc on the year. The sharp rise in sales has been driven in part by the early monsoon rainfall. These sales were for direct application only and do not include sales for NPK production.
India's MOP imports in July halved to 94,000t compared with the same month last year. Cumulative imports since April total 359,000t, down by 67pc on the year. Imports should start to pick up in the coming months following the signing of new Indian standard MOP contracts in early June at $349/t cfr with 180 days of credit.
