According to NDH
Domestic urea price falls, DAP flat
The price of urea in many provinces on June 22 decreased to 45,000 VND/bag/50 kg. Specifically, Ca Mau urea in An Giang is 795,000 VND/bag/50 kg, down 40,000 VND/bag compared to the previous day. Ninh Binh urea in Gia Lai is 840,000 VND/bag/50 kg, also down 40,000 VND/bag compared to June 21. Phu My urea in Gia Lai decreased by 45,000 VND/bag to 845,000 VND/bag.
On June 23, some types of urea decreased. Ha Bac Urea and Phu My Urea in Hanoi decreased by 20,000 – 25,000 VND/bag, down to 850,000 VND/bag/50 kg. Urea of buffalo head in Quang Binh is 840,000 VND/bag, down 10,000 VND/bag compared to the previous day.
According to the survey results of 2Nong, many rice farmers in the Mekong Delta are tending to sow late in the summer-autumn crop and may abandon the upcoming autumn-winter crop. Along with that, she refunded the recent increase in gasoline prices, which is putting pressure on production costs, and growers are psychologically shrinking the area under cultivation. These factors are the reason why fertilizer demand is now lower than last year. Besides, the world urea price is adjusting, so the domestic urea price also tends to decrease.
Sharing with the press, Mr. Phung Ha, General Secretary of the Vietnam Fertilizer Association, said that with urea fertilizer, Vietnam has 4 plants, namely Phu My, Ca Mau, Ha Bac and Ninh Binh. total capacity is about 2.65 million tons/year but domestic demand is only about 1.8-2 million tons/year. As for urea nitrogen fertilizer, although farmers in many provinces and cities do not give up the third crop like now, Vietnam still has a surplus of more than 500,000 tons/year.
The world fertilizer supply is affected by the policies of Russia and China
In the first 5 months of this year, China and Russia are the two largest fertilizer export markets to Vietnam, at 182,203 tons ($78.7 million) and 136,937 tons ($86.9 million), respectively.
In early June, the Russian cabinet said that the Russian government had approved the continuation of the application of fertilizer export quotas until the end of the year. The application period is from July 1 to December 31 of this year.
According to SSI Securities Analysis Center – SSI Research, Russia continues to impose a larger export quota on urea (8.3 million tons in the July-December period compared to 5.9 million in the period from July to December compared with 5.9 million in the period). December 2021 to May.
Besides, according to SSI Research, China’s urea export ban will be lifted at the end of June. However, due to concerns about the possibility of further blockade in China, SSI Research believes that China will limit exports. urea.
Mr. Tran Trong Nhan, Director of EduTrade Joint Stock Company – a business member of the Vietnam Commodity Exchange, said that Russia and China are the two largest fertilizer exporters in the world, with 7 billion respectively. USD and 6.57 billion USD in 2021, so the export restriction will affect the supply.
Mr. Nhan said that fertilizer prices in China after June will increase. World prices are high because of limited supply and major agricultural countries like Brazil will start a new crop after July.
For the domestic market, according to SSI Research, in terms of demand, as the third quarter is the low season for the crop industry, urea prices are forecast to continue to decline, but will increase again in the fourth quarter when the winter-spring crop begins. However, it will be difficult for urea prices to return to the peak set in March unless the price of urea raw materials (gas, coal) recovers.
