Indian urea inventories hit around 6.9 million t at the end of October, marking a second monthly build since August, as imports climbed after multiple tenders and production picked up.
The rising stocks are bridging a gap to levels in 2024, with inventories at 7.8 million t and 6.8 million t at the end of October and September in 2024, respectively. Stocks had slipped as low as 3.5 million t at the end of August this year.
Stocks rose by a net 2.12 million t in October, with domestic production of 2.68 million t and imports of 1.6 million t outstripping local sales of 2.33 million t, the latest provisional data show.
Production of 2.68 million t was the highest since the start of 2024, while sales were stable on the year.
Imports of 1.6 million t mark a slight slip from record receipts of 1.94 million t in September, but remained comfortably above typical monthly levels. Imports have jumped in recent months following a quick succession of state-backed buy tenders, with Indian firms lining up 6mn t of urea across four tenders in July-October.
Market participants are anticipating another buy tender to be floated by Indian importer and supplier IPL in the coming weeks, while RCF will close a long-term buy tender on 1 December.
Original article written by Harry Minihan on Argus Media.