The Trading Corporation of Pakistan (TCP) Monday awarded a tender for the import of 50,000 tons of urea at $294.71 per ton (C&F). The TCP is importing urea on the directives of the federal government to avoid any shortage in the domestic market. Last month, the Economic Co-ordination Committee (ECC) of the Cabinet asked the TCP to import 150,000 tons of urea till September 2015 to ensure sufficient supply during the ongoing crop season and accordingly, in the middle of July, the state-run grain trader issued three urea import tenders.
Before this import, the TCP completed some 100,000 tons urea procurement from the international market during the first half of this calendar year as the domestic urea plants are unable to meet the domestic demand due to gas curtailment. The TCP’s first urea tender, floated on July 16, 2015, opened on Monday at the TCP head office. Some 14 international suppliers participated in the tender. The prices quoted in the tender ranged from $294.71 to $309.94 per ton Cost and Freight (C&F). Out of the received bids, some 13 bids were responsive while one bid of M/s CHS was non-responsive.
The lowest rate was quoted by M/s Amepora for a quantity of 50,000 MT at $294.71 per ton. The second lowest bid was submitted by M/s Sumsung C&T for 50,000 tons at $294.97 per MT. The third lowest price was offered by M/s Dreymoor Fertilizer for the supply of same quantity at $296.81 per MT.
M/s Swiss Singapore was fourth lowest with $299.10 per MT quotation. M/s Trammo AG quoted $300.75 per MT, M/s Transglobe submitted bid of $301.00 per MT, M/s Gavilon Fertilizer’s offer was $301.95 per MT, M/s Liven Agrichem quoted $302.88 per ton for 50,000 tons and M/s Koch Fertilizer offered to supply 50,000 MT urea at $303.32 per MT. CHS quoted $304.67 per MT price for the same quantity.
M/s Fertisul International submitted a bid of $308.10 per MT, M/s Quantum Fertilizer’s offer was $309.45 per ton, M/s Amber Fertilizer quoted $309.45 per MT and M/s Key Trade offered to supply 50,000 tons at a price of $309.94 per ton. As the first lowest bid was conforming to the technical specifications and the terms and conditions of the tender, the TCP accepted the bid and the contract was awarded to M/s Ameropa for 50,000 MT at a price of $294.71 per ton.
Sources said the ministry of commerce has also given a go ahead for this deal and as per the terms and conditions; the shipment of 50,000 tons of urea would arrive next month. The second tender for the import of another 50,000 tons will be opened today (Tuesday) while another tender for the same quantity will be conducted on Wednesday to complete the deals for the import of 150,000 tons of urea.