India is a big country in agricultural production, 65% of the labor force engaged in agricultural production, urea in the total consumption of about 31 million tons, its output of about 23 million tons, nearly a quarter of dependence on imports, mainly by tender from the international market buy urea. India in 2015 a total of 9 times the total procurement tender, 7 million 341 thousand tons of urea. Due to India from China is near, coupled with China's urea production, in recent years, our country are major suppliers of urea imports by India.
For the Indian urea tender. Some people think it is "chicken: tasteless, but wasteful to discard, the main reason is the low price bidding. The author believes that the India bid or urea has its significance, mainly reflected in three points:
First, on the international market have a certain influence. The main reason is that India is a big demand of the urea, each tender are relatively large, so every time India released a tender announcement, all over the world are concerned about bid winning and winning price level has certain influence on the international market.
Two, basically reflected the international price of urea. Because India is the lowest bid winning price strategy, so basically is the international market price. In addition, the game also reflects the status of the market. The game is not only reflected in the bid price, also reflected in the scalar. If the number is low, the price is not recognized by the seller, the seller sell price, the possibility of large market outlook. This year the second tender price is low, CIF only $266 / ton, results in India only procurement to the 33 million tons of urea; seventh bidding price is also low, CIF US $257 / ton, India only procurement to the 46.5 million tons of urea, and under normal circumstances, India every urine) tender procurement volume about 75-100 million tons, the two scalar after, next time the Indian urea bidding price rose.
Three, greater impact on china. Chinese as the main provider of India tender effect on Chinese urea urea market is relatively large. Especially off-season. Its domestic demand is insufficient, the sights on the international market, India urea bidding more attractive, enterprises to participate in relatively high willingness. In the season of domestic demand, because they do not worry about sales, corporate participation will reduce, but if compared to the domestic market, price cost-effective, enterprise participation willingness will is relatively high.
The author believes that the bidding for India urea enterprises in our country, should adhere to two principles: one is that the price is too low, the firm does not participate in. If involved in, the acceptance of the low price, which is detrimental to the domestic market, and to participate in enterprise benefit is a loss. Second, it is not only to look at the price is cost-effective, depends on the market trend of the future, in the shipment of sale is cost-effective. Indian urea tender from issuing to real shipment shipment intermediate tend to have more than 1 months time, in this more than a month. Sometimes the market has undergone great changes, to analyze judged the urea price trend of late, not simply to the price at the time of determine whether the participation, but also a comprehensive exam worry behind the price trend, whether it is worthwhile to participate in.