The Saudi Arabia Basic Industry Corporation (Sabic) has regretted immediate supply of urea against the remaining $46 million credit facility of Saudi Fund for Development. However, it agreed to supply 50,000 tons urea in July.
Sources told Business Recorder on Wednesday that Trading Corporation of Pakistan (TCP) has already issued a gallop tender for import of 50,000 tons of urea for bids from international suppliers. The tender will be opened on June 17, 2011.
Before issuing the tender, TCP made efforts to import urea through Sabic. But it regretted immediate supply owing to already made commitments with other buyers.
"Sabic has already foreign deals with international buyers; therefore, it is not possible for them to supply 100,000 tons urea urgently", sources said. The government was seeking to import 100,000 tons urea against remaining $46 million credit facility of Saudi Fund for Development.
Last week, TCP Chairman Anjum Basheer visited Saudi Arab to negotiate with Sabic. However, assured to supply only 50,000 tons in the next one and half months, sources said and added that committed urea supply would reach at least in July, 2011.
"Sabic has committed to supply 50,000 tons to Pakistan, which will arrive in the second week of July, while another 50,000 tons will be supplied after October", they added.
Presently, urea prices are on surge in the international market due to rising demand and less production. The prices range from $450 per ton to $470 per ton in the world market, sources said.