Fertilizer prices today March 9, 2022: Fertilizer prices in Vietnam will increase due to the Russia – Ukraine conflict

fertilizer prices today, March 9, 2022: World Urea prices continued to increase sharply on the first trading day of this week, while in Vietnam prices have not significantly adjusted compared to the end of the week. The Russia-Ukraine conflict is having a major impact on the global Fertilizer market, and fertilizer prices in Vietnam are forecast to heat up in the coming time. Currently, the southern provinces of Vietnam are in the harvest stage and will start the new crop from the first half of April. The northern provinces have entered the winter-spring rice fertilization season, so the demand for fertilizer is gradually increasing. Agricultural product prices have improved a lot recently and have the potential to increase strongly due to the world’s huge demand for food, so it is likely that farmers will increase planting output for the new crop, thereby increasing demand for fertilizer. How Urea prices in Vietnam will fluctuate under the impact of the world situation is still unknown because domestic production has exceeded demand. However, due to the current inventory pressure of factories not being large due to the recent export promotion, it is likely that the price of Urea will increase again. Meanwhile, the domestic supply of DAP has not improved much as disputes over raw material sources have not been resolved satisfactorily. Therefore, along with the congestion of the import market, it is forecasted that there will be a serious shortage of imported DAP 64% in the second quarter and the possibility of domestic prices rising to 25,000,000 VND/ton is possible. 100% of Potassium fertilizer in Vietnam depends on imported goods. The congestion of goods from Russia and Belarus is heating up the price of Potassium globally. In Vietnam, 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 potash reaches 1,000 – 1,2000 USD/ton, potash flakes will reach a new peak of 24 – 25 million VND/ton. Potash, DAP, and Urea prices will increase, which will pull up NPK prices. Rabobank (a leading global bank focusing on agricultural and food finance) has just proposed three scenarios of the Russia-Ukraine war on the world agricultural market, including fertilizer, in the coming months. Regarding fertilizer, Rabobank said that fertilizer prices in the world are currently very high. If fertilizer exports from the two main sources, Russia and Belarus, are disrupted, prices will continue to increase. Since natural gas is the main driver of fertilizer production prices, fertilizer manufacturers in the world will also have to increase input costs, causing prices to increase further. Fertilizer prices are expected to increase by 20% to 40% depending on the scenario of the Russia-Ukraine conflict as well as Western sanctions against Russia and Belarus. According to Agromonitor, potash prices in Vietnam have increased sharply in recent days due to concerns about tight potash supply on the world market due to Western sanctions against Russia and Belarus as well as logistical problems. Each year, Russia and Belarus account for more than 40% of Vietnam’s potash imports. Israeli potash prices traded in Ho Chi Minh City and Can Tho have increased beyond the peak of late 2021. Some types of domestically produced urea are also showing an upward trend or limited supply to the market. Meanwhile, the price of imported DAP from China has increased sharply. According to information from some fertilizer importers, the disconnection of some Russian banks from the SWIFT system is making it impossible for banks in other countries to open/receive LCs from Russian banks, and payments cannot be made in USD, Euro, Pound or Yen. Fertilizer importers have discussed with partners in Russia and Belarus, as well as major banks in Vietnam, but there is currently no satisfactory payment solution. According to Mr. Vu Duy Hai, General Director of Vinacam, it is difficult to give an exact answer to how much fertilizer prices will increase, but perhaps we have to wait until the peace agreement between Russia and Ukraine is signed and the West lifts sanctions. In the country, if state management agencies remove import and defense taxes, and restrict exports, the situation of Urea and DAP will certainly cool down. #fertilizer_price #farmers #western_region #fertilizer_price #fertilizer #fertilizer #fertilizer #potassium_price #agriculture #fertilizer #agricultural materials

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