India is expected to purchase 1.5–2.5 million tonne urea in January and February 2014 to meet the outstanding demand. Purchases during the October-November period have been robust, with price increases seen for some products, according to a monthly report by ICIS, provider of petrochemical, energy and fertiliser market information.
The demand for fertilisers mainly urea, ammonia, sulphur and potash is expected to improve in the coming months, it said.
Urea prices in India increased in October, with the lowest offer from State Trading Corporation of India (STC) at $309.9 per tonne CFR (cost and freight), up $15 per tonne from the September tender from state-owned trading firm MMTC, it said.
About 240,000 tonne ammonia was loaded to India from Saudi Arabia and Iran in Ocotber. Contract prices for buyers on both coasts have increased slightly to $472-479 per tonne CFR and the netbacks to the Arabian Gulf are around $435tonne FOB (free on board).
The phosphates market in India has been bearish this month and buyers are not expected to return to the market before the new year due to ample inventories and weak prices, the report said adding that the price of phosphoric acid is down by about $ 100 a tonne to $609 a tonne (CFR), the report said adding that the demand for sulphur is likely to pick up in late November when the sugar season starts.
“Sellers agreed to give discounts as importers were deferring outstanding shipments due to the depreciation in the rupee against the US dollar and following a decline in global prices,” said Deepika Thapliyal, analyst at ICIS, on the demand-supply side dynamics.
Source:- mydigitalfc.com
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