Urea: Chinese supply sees offers into India below $400pt cfr across both coasts in latest tender

Price bids have been opened in the Rashtriya Chemicals and Fertilizers (RCF) tender for urea for shipment by 24 September. The state agency is targeting up to 1.7m. tonnes through the inquiry. 

The lowest offers were submitted at $390.25pt cfr east coast and $393.65pt cfr west coast. These were submitted by Ameropa for 165,000t and 226,000t, respectively and are broadly in line with prior market reports.

A total of 1.336m. tonnes was offered below $400pt cfr including 615,000t offered into the east coast below $395pt cfr. 

The lowest offers compare to those of $444.90pt cfr east coast and $449.30pt cfr west coast in the 8 June National Fertilizers Limited (NFL) inquiry which saw close to 1.8m. tonnes booked.

Of note, the last time offers were below $400pt cfr for both coasts was in April 2025.

As detailed extensively in recent coverage from Profercy, significant volumes have been offered basis shipment of prilled urea from China with several traders receiving backing prior to the inquiry.

Netbacks basis the aforementioned offer levels are below $370pt fob for shipments to the east coast, although product is also expected to be confirmed to the west coast.

Prilled business in China this week has been concluded down to the low-$360s pt fob for other markets.

Most estimate Chinese availability to be in the 1-1.5m. tonnes range, potentially restricting options for other suppliers in India.

Assuming price levels are acceptable to suppliers, logistics and inspection times are set to be the main determinant of the precise volumes committed.

For Russian prilled suppliers, lowest west coast offers reflect comfortably below $340pt fob Baltic, under recent price targets of $355-360pt fob and above.

Suppliers elsewhere, including Oman, Africa and SE Asia, are not expected to show significant interest in the tender. However, the near-term reaction from granular urea markets, such as Brazil, may shape marketing plans.

Full news and analysis is available via the Profercy Nitrogen Service.