Indian importers announced a joint tender for the purchase of up to 521 thsd tons of ammonia

Indian Potash Limited has floated a tender to supply up to 521,000 tonnes of ammonia for shipment in June-August amid supply disruptions from the Middle East and volatile spot prices in the Asia-Pacific region.

The tender is for 151,000 tonnes to ports on India’s west coast and 370,000 tonnes to ports on the east coast. Bids will be accepted until May 18, and bids must remain valid until at least May 25.

The tender involves six companies that account for about 90% of India’s ammonia imports: IFFCO, PPL, Indorama, CIL, GSFC and FACT. The source said the merger was prompted by a monthly shortfall of over 300,000 tonnes of ammonia from the Middle East, at least half of which was normally shipped to India.

The source also reports an increase in ammonia exports from China to India, Morocco and Australia amid reduced supplies due to the war in Iran. Additional export capacity in the US of up to 2.4 million tons/year is also contributing to an increase in US supplies to countries east of the Suez Canal.

The Tampa contract for May deliveries was concluded at $825/t CFR, $50/t higher than the April level.

Tags: India, fertilizers, tender