Inside Financial Markets

53,000 tons of urea to arrive on July 17

urea53,000 tons of urea to arrive on July 17

A ship carrying 53,000 tons of urea, imported by Trading Corporation of Pakistan (TCP) from international market, reaching Pakistan in the third week of this month. In January this year, the Economic Co-ordination Committee (ECC) of the Cabinet had directed TCP to import 130,000 tons of urea from international market to avoid any shortage during Rabi season as domestic urea plants are unable to meet local demand due to gas curtailment.

Following the directives, the state run grain trader successfully awarded first urea import tender on April 24, 2013 to the lowest bidder M/s Helm Dungemittel, GMBH at a price of $374.73 per ton Cost and Freight (C&F) for import of 80,000 tons of urea. The tender was for the import of 130,000 tons with minimum bid quantity of 50,000 tons, however the lowest bidder’s offer was only for 80,000 tons.

At the same time, to comply with the decision of the ECC, a fresh tender for the balance quantity of 50,000 tons was issued by TCP to complete the total targeted quantity of 130,000 tons. The second urea import tender was opened on June 5, 2013 and accordingly awarded to the second lowest bidder M/s Trammo at $337.17 per ton for the supply of 50,000 tons.

As per schedule provided by M/s Trammo, a ship namely “MV Elenid” carrying about 53,000 tons of urea will reach Pakistan as on July 17-18, 2013 as presently urea is being loaded on the ship on a Chinese port. The successful bidder has already assured to supply complete quantity by this month. A quantity of 73,000 tons of urea has already been imported through first tender and with the arrival of this consignment, overall import will reach 123,000 tons against the targeted quantity of 130,000 tons.

Besides this import, TCP is already engaged in importing urea from Saudi Basic Industries Corporation (SABIC) under the $100 million credit facility being provided by Saudi Fund for Development (SFD). Under this agreement, some four urea shipments have already been arrived, while overall some 220,000-240,000 tons of urea arrival is expected against 100 $million credit facility. Sources said TCP is only responsible for the import of urea, while the distribution, transportation and bagging of urea will be handled by National Fertiliser Marketing Limited (NFML) to ensure timely supply of urea to farmers during Rabi season.

Sanie Khan

Sanie Khan holds a deep knowledge of the financial markets in Pakistan. Based in Karachi, he has over 20 years of hands-on management experience in financial technologies and managing operations in the financial sector. He was the General Manager at the Pakistan Stock Exchange (PSX) for 17 years. He along-with senior members of Exchange

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Inside Financial Markets was a joint publication of Pakistan Stock Exchange (PSX)and Society of Technical Analysts Pakistan (STAP)