Indonesia's Gresik sells prilled urea at $385/t fob

Indonesian state-owned Pupuk subsidiary Gresik awarded today's prilled urea sales tender at $385/t fob.

Gresik had offered 20,000t under the tender for loading next month. Initial bids from some trading firms were heard up to the low $370s/t fob. There was no comment from the parties involved.

The sale marks an increase on the $381/t fob achieved by fellow Pupuk subsidiary Pusri under its 13 September tender. The deal also highlights the continued premium for prilled urea over granular product in the region, with Chinese exports nonexistent, following the sale of Indonesian granular product in the mid-high $350s/t fob late last week.

The supply-demand balance east of Suez remains tight, with India issuing another tender to buy shortly after a previous purchase, a lack of exports from China and increasingly limited availability from the Middle East.

By Harry Minihan