Fertilizer prices – Fertilizer market information today March 15, 2022: DAP and Potassium fertilizer prices increase sharply

fertilizer prices today, March 15, 2022: DAP and Potassium fertilizer prices continue to increase sharply, surpassing the record high at the end of 2021. Many orders were canceled, domestic fertilizer prices increased simultaneously. In the first half of March 2022, domestic fertilizer prices (Urea, DAP, Potassium) increased by 300 – 700 VND/kg (depending on the type) and this is the third price increase since the beginning of the year. Compared to the end of 2021, fertilizer prices have increased by more than 20% and are currently the highest ever, and are expected to continue to increase rapidly as the Russia-Ukraine war shows no signs of stopping. The Russia-Ukraine tension has caused the world’s fertilizer prices to reach a 50-year high in USD terms… Rabobank (a leading global bank, focusing on agricultural and food finance) has just presented scenarios of the impact of the Russia-Ukraine war, as well as Western sanctions against Russia on the Fertilizer market in the coming months. Rabobank predicts that fertilizer prices will continue to increase by 20% to 40% in the second quarter of 2022. Fertilizer prices and oil prices are always organically related to each other, because urea is an increased product of the oil and gas refining industry. Russia’s fertilizer production accounts for about 30% of the total fertilizer supply worldwide. In particular, Russia supplies up to 70% of raw materials for fertilizer production in Europe. Therefore, the impact of the Russia-Ukraine war is causing world fertilizer prices to fluctuate strongly. On the other hand, there is still no sign of the restrictions and bans on the export of some key fertilizer products from Russia and China being lifted, causing the supply of fertilizers, especially Potassium and DAP, to decrease severely in the coming time. At this time, suppliers in the Middle East have canceled their Urea fertilizer offers at 540-560 USD/ton (FOB), waiting for a price increase. Vietnamese import enterprises have only successfully received goods with 3 fertilizer ships from February 2022 to present, currently there are about 30,000 – 40,000 tons of fertilizer that Vietnamese enterprises have signed contracts to order from the Middle East, but now the transaction has been canceled by the partner. Currently, fertilizer suppliers in Southeast Asia are out of stock until mid-April 2022. On March 3, Brunei’s granular urea plant declared force majeure to refuse to fulfill orders that had been closed at low prices in February 2022. For potash fertilizer, Belarus and Russia are the two largest suppliers in the world, accounting for 40% of global supply. With the current panorama, potash prices will skyrocket in the near future, especially potash flakes. Suppliers all confirmed that in the coming time, there will be no more imported potassium from Russia and Belarus, and taking advantage of the opportunity, Israel, Canada… have warned that they will soon set a price of 800 – 850 USD/ton for powder granules and 1,000 USD/ton for flakes from the second half of June 2022, and it will even reach 1,200 – 1,300 USD/ton by the end of 2022 and early 2023. In the Vietnamese market, some types of domestically produced urea are also increasing in price sharply. On March 10, 2022, the price of Ca Mau urea and Phu My urea increased by 200 VND/kg compared to the previous day to about 18,000 VND/kg, and Ha Bac urea also increased by 250 VND/kg to 16,000 VND/kg. Dinh Vu DAP fertilizer is being sold by agents at 18,800 VND/kg, Lao Cai DAP 18,500 VND/kg, Phu My NPK fertilizer 16,000 VND/kg, Russian NPK 16-16-16 16,500 VND/kg… Compared to February, fertilizer prices have increased by 5 to 8%. This is the third consecutive time since Tet that prices of Urea, DAP, NPK, Potassium… fertilizers have increased simultaneously. Currently, 100% of Potassium fertilizers in Vietnam are imported. Each year, Russia and Belarus account for more than 40% of Vietnam’s imported Potassium. According to the Agromonitor Agricultural Market Analysis and Forecast Center, Potassium prices in Vietnam have increased sharply in recent days due to concerns about tightening Potassium supply on the world market due to Western sanctions against Russia and Belarus. Agromonitor forecasts that in Vietnam in the near future, the price of Potassium will soon reach 15 – 16 million VND/ton for powder and 18 – 20 million VND/ton for flakes. Even if the price of imported Potassium reaches 1,000 – 1,2000 USD/ton, flakes of Potassium will reach a new peak of 24 – 25 million VND/ton. The increase in prices of Potassium, DAP, and Urea will pull up NPK prices. With DAP fertilizer, it is estimated that Vietnam will have a 64% shortage in the second quarter of 2022 and the domestic price will likely reach 25 million VND/ton. To cool down fertilizer prices, Mr. Vu Duy Hai, General Director of Vinacam Group Joint Stock Company, said that the Government needs to apply emergency measures to temporarily stop exporting fertilizers. #fertilizer_price #farmers #western_region #fertilizer_price #fertilizer #fertilizer #fertilizer #agricultural_materials

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