Indian fertilizer importer NFL has closed its urea procurement tender today, with initial reports indicating the lowest bids are around or just under $340 per ton CFR (Cost and Freight) for delivery to the west coast. NFL plans to review and open the technical offers on August 30, with the official pricing likely to be disclosed early next week. The company has requested that shipments be completed from load ports by October 31.
If the lowest bid is confirmed, it would suggest FOB (Free on Board) netbacks of around the low-to-mid $320s per ton from the Middle East and $280 per ton from the Baltic region, factoring in freight and other associated costs.
Despite significant inventories, India’s demand for urea imports remains strong, driven by a robust monsoon season. Market participants anticipate that NFL could secure at least 1 million tons of urea through this tender. Since the start of June, rainfall has been 7% above the long-term average, boosting domestic urea consumption. Sales to consumers could reach as high as 5 million tons this month, up from 4.68 million tons in August of last year.
