Ann: LCK Chairman interview by Korean TV Network, page-9

  1. 23 Posts.
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    The Urea market in India is HUGE. They produce a fair bit themselves ~20 mil tons but need ~30 mil tons. When they go to the market for the shortfall it manipulates the market wildly. On historical data you will generally see a surge upward in price leading up to the Indian Tender as manufacturers restrict supply to be able to supply the tender if won. Then a pullback on price in the following weeks as manufactures who didn't get the tender start to dump tons back onto the open market. I have noticed this pattern has been less so the last couple of years as it seems the Indians are putting out tenders more often for smaller volumes. (600-800kt per tender instead of 1-2MT) and of course this year is one completely out of the box with the Chinese bowing out of the market. I would think that all this considered the Sub Continent would be an excellent place to set up shop. Also if I had to hazard a guess I would think that Brazil would be the destination of choice in South America
 
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