Urea Tender Soars Amid Supply Disruptions

Indian Potash Ltd, a major importer of urea, has received supply offers at approximately $1,000 per metric ton in its latest tender, a price nearly double from two months ago. This surge follows disruptions caused by the U.S.-Israeli conflict involving Iran, according to two company sources.

The increased buying by India, the world's largest urea importer, is expected to push global spot market prices higher, influencing costs for smaller Asian and African buyers. The tender issued earlier this month aims to secure 2.5 million tons, nearly 25% of India's annual imports, slated for completion by 2025.

The lowest offers stood at $935 per ton on the west coast and $959 on the east. With previous tenders observing prices as low as $508 and $512, this hike presents significant challenges. India's reliance on imports to satisfy its agricultural demand highlights the complexities tied to global supply chains and geopolitical tensions.