On the eve of the India round of bidding, China's urea export market improves, the international price of urea continued rose sharply compared in nearly a year in export restricted conditions, the industry once again to India for hope. Up to now, India has given a counter-offer price, but also has been part of the winning bid for urea goods, but from the current situation, this round of printing marks on the domestic urea market is still very little support.
In terms of the progress of bidding in India, the game between buyers and suppliers is still fierce, and both sides have their own "careful thinking"". First of all, the competitiveness of low cost urea in the world in the Middle East is very strong, do not have the exact message that the production cost of urea in Iran is $90 / ton, while the supply of this round of marking of the urea release on the occasion of Iran is not sufficient, the international news that September export shipment is full, it also support the marking the lowest bid price higher than last July 13th the lowest bid price in bidding up to $38.16-46.5 / ton, but considering the situation in China to support domestic demand, India has also as much as possible to the shipment after the extension, India will eventually shipment in October 23rd.
In addition, this round of India minimum bid price is very meaningful. On the occasion of the opening of the west coast of India, the lowest bid price of $241.22 / ton CIF, east coast for 251 U.S. dollars / ton CIF, the lowest bid price is provided by the Iran and Oman, it seems in Oriental considering more interests at the same time, can guarantee the shipment is still the first priority, in this case, to avoid the world urea the prices of export profit is maximum security, especially Chinese (the marking of the company 60 thousand tons of urea in the bid price of US $256.85 / ton CIF). At that time, China's urea raw material coal prices continued to rise after the experience, the full cost of Shandong urea has reached about 1430-1450 yuan / ton, close to Hong Kong price about 1540 yuan / ton, according to the exchange rate of 6.5, with about $246.1 / ton FOB, CIF India east coast 259.1 dollars / ton, that is to say in China, the production of urea, then there will be a loss of about 52 yuan / ton, the domestic enterprises are no more inventory pressures, believe that most companies are unwilling to do so.
Then India party according to their own situation and the supply side bearing capacity of final confirmation: west coast port CIF price is $241.22 / ton, east coast port CIF 246.91 U.S. dollars / ton, the price is lower than the east coast is the occasion of the east coast of the lowest bid price of $251 cif. In other words, China's urea, if you want to win the bid, according to the current Shandong urea enterprise location and production costs, the loss will reach 78 yuan / ton.
Although this round of bidding in our country urea difficult to win the bid, but also to the domestic urea market bring some good, but good reflect, perhaps not in this round of India bidding. As of now, the India round of bidding bid for goods 325 thousand tons of urea, 265 thousand tons from Iran, it looks like the other regions in the world, or for no sales pressure, or for profit, the price is relatively strict control of Urea Export in India, overall domestic urea inventory is not the case, perhaps they will issued a new round of bidding; in addition, even if India in the short term is no longer tender, in the premise of high international price of urea, urea goods Iran October basic sales situation, China's urea may in the near future will have more opportunities in other areas of export.