India, the world’s largest urea importer, drew prices that were less than half of an April tender, a sign that the global fertilizer supply strain from the war in Iran is starting to ease.
National Fertilizers Ltd., a state-run producer that also imports the nitrogen-based crop nutrient for the government, has been seeking to buy 1.7 million tons of the fertilizer variety in a tender that closed Monday. The company received offers between $444.90 and $617 a ton, according to people familiar with the matter.
Offers for the west coast totaled about 3.1 million tons above a target for 900,000 tons, and a similar quantity for the east coast versus a target of 800,000 tons, said the people, asking not to be identified due to the commercial sensitivity of the information.
A fertilizer ministry spokesperson didn’t immediately reply to an email seeking comment outside of business hours.
The Strait of Hormuz is a major conduit for fertilizer trade and its near-closure since the outbreak of the war has sent global costs soaring. India paid $935 to $959 per ton to procure supply in April, close to double pre-war levels.
