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October 12, 2009 / Volume 23 / Number 27

BRITISH SULPHUR CONSULTANTS A DIVISION OF CRU

October 12, 2009

Urea INDONESIA: Kaltim received 18 responsive bids from traders in the sales tender for a nominal 20,000 mt granular urea that closed today, October 12. Several bids were submitted substantially above the $250/mt FOB sales by Kaltim in the September 29 tender, with the highest coming from Bintang Baja at $258.25/mt FOB. The Bintang Baja bid was followed by D Trade, acting on behalf of Yara, at $257/mt FOB, and by Youngwoo at $255.50/mt FOB.

Kaltim elected to award the full quantity available, and has sold the following for October-November loading from Bontang.

• Bintang Baja 50,000 mt granular $258.25/mt FOB • DTrade/Yara 20,000 mt prills $258.35/mt FOB

Indian Subcontinent

INDIA: STC is still in discussions with suppliers relative to the October 8 tender. Contrary to indications over the weekend, Letters of Intent (LoI) are so far only issued for 160,000 mt for Trammo, 45,000 mt for Amber and 15,000 mt for Keytrade. Other LoIs remain pending as STC and suppliers are yet to formally agree on differentials in pricing and terms for the various discharge options contained in the tender. Most pending issues are termed minor however, and further LoIs are expected in the course of the day.

PAKISTAN: TCP awarded Transfert 50,000 mt at $287.78/mt CFR as offered by the trader in the October 10 tender for 150,000 mt. Offers in the tender that were tabulated in an Extra Update issued on the date of tender are repeated below together with an update on awards issued to date:

TCP – OFFERS IN OCTOBER 10 TENDER FOR 150,000 MT UREA Supplier Origin

Quantity '000 mt

Price $/mt CFR

Validity Shipment

Transfert Open

50 50

287.78

Apt

Trammo Open

50-70 50-70

289.77

Apt

Gavilon Open

50 50

291.00

Apt

Multicommerce Open

50-70 50-70 50-70 s/o

291.15 291.15

Apt

Amber Open

50 50

292.90

Apt

Helm Open

50-140 50-70 50-70 s/o

294.35 294.35

Apt

Dreymoor Open

50-105 50-70 25-35

294.73 294.73

Apt

Keytrade Open

50-60 50-60

298.62

Apt

Total

300-530

Apt= As per tender s/o = seller’s option

Awards under the October 8 tender for 150,000 mt are limited to the 100,000 mt booked by Trammo at $283.77/mt CFR. A recap of awards to date and upcoming tenders is listed below for easy reference:

TCP – AWARDS IN OCTOBER 2009 TENDERS

Tender number Qty '000mt

Tender date

Supplier

Qty '000 mt

Price $/mt CFR

9-1/09 - 150 03 Oct Toepfer 50 298.94 9-2/09 - 150 06 Oct Dreymoor 70 288.81 9-3/09 - 150 08 Oct Trammo 100 283.77 9-4/09 - 150 10 Oct Transfert 50 287.78 9-5/09 - 100 13 Oct 9-6/09 - 100 15 Oct 9-7/09 - 100 17 Oct Total to date 220

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October 12, 2009 / Volume 23 / Number 27

BRITISH SULPHUR CONSULTANTS A DIVISION OF CRU

FOR GLOBAL MARKET INTELLIGENCE

FERTILIZER WEEKFERTILIZER WEEK

Given the relatively limited volume secured so far, TCP is expected to issue two or three more tenders for 100,000 mt each, likely closing October 20-24.

SRI LANKA: As reported in the October 9 Extra Update, the Ministry of Agriculture, working jointly with CFC and CCF, received seven offers totalling 204,000 mt from traders in the tender today for 4 cargoes of 12,000 mt bagged urea each. The lowest offer was submitted by Wilson, offering Ukraine/Chinese material at $309.97/mt CFR with 180 days credit. Shipment of the four lots stretch through the first quarter of 2010. Offers submitted basis 180 days credit unless otherwise indicated were:

MoA: OFFERS IN OCTOBER 9 UREA TENDER Supplier Origin

Quantity ‘000 mt

Price $/mt CFR Including 180 days

Shipment Remarks

Wilson FSU/China

48 4x12

309.97

Apt Lots 1-4

Helm China

24 2x12

318.79

Apt Two lots

Ameropa China

12 12

324.38 270 d

Apt Lot 3

Valency Qatar

12 12

323.38

Apt Lot 3

Toepfer Qatar

48 12 12 24

326.86 329.89 330.91

Apt Lot 1 Lot 2 Lots 3-4

Blue Deebaj FSU/China

24 2x12

328.85

Apt Lots 1-2

Midgulf FSU/China

36 3x12

399.73

Apt Lots 1-3

Total

204

Apt= As per tender

Ammonia EGYPT: The EBIC plant has re-started and the Nijinsky has been loaded with an unknown quantity, likely to be 15,000 mt, for Transammonia. The vessel’s destination has not been confirmed by the trader, although part of the cargo is understood to be heading to DSM, Netherlands.

QATAR: Qafco has signed a Letter of Intent (LOI) for the construction of its Qafco-6 project, with an estimated cost of $610 million. Qafco says an LOI has been signed with a consortium of the Italian company Saipem and the Korean company Hyundai for the EPC (Engineering, Procurement and Construction) of the Qafco-6 expansion project. Yara owns 25% of Qafco, the remaining 75% is owned by Industries Qatar. The project includes the construction of a 3,850mt/day urea plant, with the completion scheduled for Q3 2012. The consortium of Saipem and Hyundai is currently constructing the Qafco-5 project comprising two ammonia production trains with a total capacity of 4,600 mt/day, and a urea plant with a total daily production capacity of 3,850 mt/day. Completion is expected by the first quarter of 2011. The Qafco-6 project will bring the producer’s total annual production capacity to around 3.8 million mt of ammonia and 5.6 million mt of urea.

Phosphates INDIA: RCF opened the price offers October 10 under its tender for 200,000 mt of DAP held October 8 and the lowest offer submitted is understood to be $367/mt CFR. The bidder which submitted the offer was unknown at press time. RCF is currently holding an e-reverse auction and the results of the auction will follow through an Extra Update once these are made available. Four offers were submitted under the import enquiry as reported in the October 8 Thursday Markets Report as follows: RCF: OFFERS IN OCTOBER 08 TENDER FOR 200,000 MT DAP

Supplier Quantity Shipment Origin '000 mt Ameropa CIS

25-50.0 25.0

25.0 s/o

Apt

Swiss Singapore China

25-75.0 25.0

50.0 s/o

Apt

Transammonia US

40.0 Apt

Wengfu China

60.0 Apt

TOTAL 150-225.0 Apt= As per tender; s/o =at seller’s option; JPMC sent regrets

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October 12, 2009 / Volume 23 / Number 27

BRITISH SULPHUR CONSULTANTS A DIVISION OF CRU

FOR GLOBAL MARKET INTELLIGENCE

FERTILIZER WEEKFERTILIZER WEEK

SRI LANKA: As reported in the October 9 Extra Update, the Ministry of Agriculture, working jointly with CFC and CCF, received six offers totalling 72,000 mt TSP in a range of $276.70-325.67/mt CFR with 180 days credit under its October 9 tender for two lots of 12,000 mt of TSP each. Helm submitted the lowest offer at $276.70/mt. Offers were as follows:

MoA: OFFERS IN OCTOBER 9 TENDER FOR 2x 12,000 MT OF TSP Supplier Origin

Quantity ‘000 mt

Price $/mt CFR 180 days credit

Delivery

Helm 12.0 276.70 Apt China Swiss Singapore 12.0 277.50 Apt China Valency 12.0 281.44 Apt China Blue Deebaj 12.0 297.48 Apt China Toepfer 12.0 306.97 Apt China Midgulf 12.0 325.67 Apt China/ Egypt Total 72.0 Apt = as per tender The tender committee is currently evaluating offers.

Potash GERMANY: The newest member of K+S’s supervisory board will be from EuroChem. In order to create a seat so that MCC/EuroChem can be represented on the board, Dr Uwe-Ernst Bufe has tendered his resignation. A court of registration has appointed George Spyridon Cardona, who is on EuroChem’s board of directors, as successor until the next K+S annual general meeting (AGM), which is in May 2010. The AGM will then decide on whether Mr Cardona will be re-elected.

SRI LANKA: As indicated in the October 9 Extra Update, the Ministry of Agriculture received four offers in its October 9 tender for 24,000 mt for delivery March 2010. The origin is unknown at press time. In its previous September 11 tender, the MoA awarded Dragon Asia Fertilizer to supply 12,000 mt MOP to CCF at $538/mt CFRLO with 270 days credit.

The offers are as follows:

MoA: OFFERS IN OCTOBER 09, 2009 TENDER FOR 24,000 MT BAGGED MOP

Supplier Origin

Quantity ‘000 mt

Price $/mt CFR with 180

days credit

Price $/mt CFR 270 days

credit

Shipment

ETA -

12 586.67 DDP

Apt

Toepfer -

12 525.97 Apt

Dragon -

12 535.00

Apt

Swiss Singapore -

12 539.70 Apt

Total 48 DDP= delivered duty paid – delivered to buyers’ warehouses, Apt= as per tender