India's million tons of urea procurement difficult to suppress the low tide

India's MMTC has recently secured over 1 million tons of urea through its procurement efforts. On March 12, the bid prices for China and Iran were reported at $305–307 and $310–312 per ton, respectively. For Chinese suppliers, more than half of their production costs exceed these levels, making this pricing highly competitive but also challenging for some producers. Despite the low price, this tender plays a crucial role in the market. The 800,000-ton shipment from China is expected to keep the price stable until mid-April. Additionally, India may not rush the next tender due to upcoming elections, which could delay the process. It's possible that the next bidding round might be postponed until May, allowing shipments to be delayed until July. This would give Chinese suppliers an advantage, as they can benefit from lower tariffs during that period. The strategic timing of these bids highlights the complex interplay between global markets, domestic policies, and geopolitical factors.