India urea import offers decline 12% as war supply squeeze eases

India, one of the world’s biggest urea importers, received offers for the soil nutrient that were 12% below the June purchase price, signaling that the war-driven tightness in the global fertilizer market is easing.

State-run producer Rashtriya Chemicals & Fertilizers Ltd., which also imports urea on behalf of the government, received offers for about 3.1 million tons against a 1 million-ton tender for the west coast, with prices between $393.65 and $435 a ton, according to people familiar with the matter.

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For the east coast, submissions totaled 2.4 million tons against a 700,000-ton requirement, with offers between $390.25 and $435.5 a ton, they said, asking not to be identified due to the commercial sensitivity of the information.

India paid as much as $959 a ton for supplies in April, nearly double pre-war levels. However, prices crashed to less than half for its June tender as supplies eased while global demand weakened.

A fertilizer ministry spokesperson didn’t immediately reply to an email seeking comment sent after office hours.

Vessel traffic through the Strait of Hormuz, a key conduit for global fertilizer trade, has held well below normal since the war broke out in February, disrupting supplies and driving prices higher. Peace talks between US and Iran remain stalled, with both sides claiming control of the crucial waterway.

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