India
No bidders match L1 prices in counteroffer round
India's IPL has reportedly received no additional volume commitments at its L1 prices following the counteroffer stage of its 7 October urea tender, which sought 1.7mn tonnes. The deadline for bidders to confirm their willingness to match the L1 prices expired on 14 October.
The initial L1 offers covered just 410,000 tonnes across both coasts:
East Coast (ECI): 60,000 tonnes at $352.10/t CFR.
West Coast (WCI): 350,000 tonnes at $356.25/t CFR.
Under the counteroffer process, participating suppliers were required to match the respective L1 prices and confirm the volumes they were prepared to supply. No additional acceptances are understood to have been received.
The lack of response highlights the gap between IPL's sharply lower tender prices and the netbacks producers are prepared to accept. Chinese and Russian suppliers, among others, are understood to have been reluctant to commit tonnes at these levels.
IPL reportedly exploring L2 prices
With the L1 counteroffer round failing to attract further volumes, IPL is rumoured to be examining the possibility of securing additional quantities at L2 prices.
ABGT established the second-lowest offers on both coasts:
ECI: 350,000 tonnes at $353/t CFR.
WCI: 100,000 tonnes at $366/t CFR.
On paper, these offers represent a further 450,000 tonnes, potentially lifting the combined L1 and L2 bid volumes to 860,000 tonnes. However, this remains theoretical. There is no confirmation that ABGT would commit the full quantities at L2, that the volumes are physically distinct, or that IPL has formally moved to procure at these prices.
Meanwhile, international urea markets continue to present a contrasting picture. Granular urea prices in North Africa have reportedly risen sharply, reaching $527/t FOB in Egypt and $530/t FOB in Algeria. Although these granular FOB values are not directly comparable with India's prilled urea CFR bids, they underline the divergence between IPL's tender results and prevailing values in other major markets.
AFRIQOM Market Reporter
