India is expected to import a record 2.5 million tons of urea in a single tender, a move reflecting the severe global supply constraints caused by the conflict involving Iran. This information was confirmed by sources speaking to Reuters on Wednesday (22). The acquisition represents approximately 25% of the country's annual imports, making it one of the largest operations ever carried out in the international fertilizer market. Prices paid in the tender have practically doubled compared to levels recorded two months ago. According to government sources, approximately 1.5 million tons were acquired at US$935/t (west coast) and another 1 million tons at US$959/t (east coast). Despite this, most of the bids received were close to US$1,000/t, reaching US$1,136/t, highlighting the upward pressure in the market. The bidding process was conducted by Indian Potash Ltd (IPL), which received bids for 5.6 million tons, more than double the volume actually contracted. According to the tender, shipments must be completed by June 14th, marking a critical supply period for Indian agriculture. The price surge is directly linked to logistical disruptions in the Middle East, with the closure of the Strait of Hormuz, through which a large portion of nitrogen inputs are transported, as well as the natural gas used for fertilizer production.
This text was translated by machine from Brazilian Portuguese.