Bangladesh DAP/TSP tender offers emerge

Bangladesh's private-sector tender for 500,000t of DAP, which closed today, drew offers from 13 traders for at least 394,000t at $645-695/t cfr for lots of 15,000-40,000t.

There was also one small offer of 4,000t at $925/t cfr.

Freight from China, the likeliest source of the DAP, is estimated at $30-35/t, with other associated costs at $30-55/t. This suggests the lowest netbacks to China are at around $560/t fob. It is unclear how much backing local traders have and whether Chinese producers would support offers at the low end.

Bangladesh received seven TSP offers totalling 65,500t, with three specifying Moroccan or Lebanese origin. Prices ranged at $645-661/t cfr for 10,000-30,000t lots, with two traders offering 2,500-3,000t lots at $940-950/t cfr. The tender had sought 250,000t of TSP.

A full list of offers and further analysis will be published in due course.

By Mike Nash