Commodity online exchange Kyiv Mercantile Exchange – KME: the results of the second week of April 2019 on the markets of mineral fertilizers in Ukraine and the world
News overview in the world fertilizer market. Main events of the week:
- Global fertilizers market activity declined
- Unexpectedly little urea is bought in Asia
- China went out with purchases of urea
The main attention of market participants is focused on the Indian tender. There, instead of 600 thousand tons, only 375 thousand tons of urea were purchased. Offer price – 247 USD/t, FOB. Traders were expecting for the price level of 250-252 USD/t, FOB – the Middle East, and the volume of purchases is 200 thousand tons more. Therefore, the new tender will be held no later than May 10, 2019.
China came out with the purchase of urea, taking a shipment of goods from Indonesia. But due to lower prices in China itself, imports are unlikely to happen in the near future. It is indicative that the price of the goods was 254-256 USD/t, FOB. The Asian market shows relatively stable prices, even high for the spring period.
But the global nitrogen fertilizer market significantly reduced purchasing activity. Latin American buyers see an increased supply of Russian and Algerian fertilizers, so they start trading at a price of 255 USD/t, CFR.
An interesting situation with nitrogen in Turkey. Here, urea is offered from three sources at once, and the Iranian product purchased has cooled the market very much.
The global market for complex fertilizers had no significant activity last week. Phosphate fertilizers have ceased to become cheaper, but no significant transactions have been noted.
News overview in the Ukrainian fertilizer market. Main events of the week:
- Sharp cooling continues fertilizing season
- In Ukraine, a record imports of saltpeter – 578 thousand tons for the first quarter
- Nitroammophos is not as popular as expected.
- Agrarians change priorities in phosphate fertilizers
Cooling, which came after the rains, played a positive role in the demand for fertilizers. And the rains themselves are very necessary for the future harvest. Also, the purchase of nitrogen fertilizers will continue somewhat, but in the field, and not in wholesale. Traders reduce wagons deliveries.
Farmers have already eliminated in certain regions and are actively buying phosphate and NPK fertilizers. Urea became the hit of April.
It can be expected that the nitric season will last until May 10th. KAS and ammonium sulphate are still needed.
The saltpeter price fell to 8500 UAH/t, plant. Traders in the south reduced the price to 400 UAH/t, port. From Monday, April 15th there is a bigger price reduction.
Import of saltpeter for the first quarter turned out to record ones – almost 600 thousand tons. According to the information industry, this is corrected with the demand, because Ukrainian producers won as well. They increased their supplies to the domestic market, pre-more imports. According to experts, in the spring at least 1,250 thousand tons of saltpeter were purchased, more than last year.
Nitroammophos was sold from 12,600 UAH/t, FCA, but the demand is not the same as traders expected, we are waiting for improvement. So far, among the NPK, diammophos was sold very well.
Since the beginning of April, manufacturers from Russia and Belarus have even slightly reduced prices for traders. The UAH exchange rate allowed reducing prices in the Ukrainian market but does not give a push to the growth in sales of NPK fertilizers.
A similar situation with the purchase of phosphate fertilizers. Ukrainian manufacturers complain that the season is much worse than last year. Now the best sales of ammophos, which can already be bought at a price of 17,100 UAH/t, CPT/warehouse.
Farmers begin to be interested in potash fertilizers. The potassium chloride season is already opening; in May we are waiting for high activity. Potassium can be bought for 10800 UAH/t with delivery.
Note that the review is made on the basis of data from the tenders and applications for the purchase and sale of the commodity online exchange KME and data analytical group Info Industry.
For reference: Kyiv Mercantile Exchange – the newest Ukrainian online exchange. Realises the world standards of stock trading in the Ukrainian markets of agricultural, chemical and petroleum products. In 2019, the total turnover of trades on Kyiv Mercantile Exchange exceeded UAH 4.5 billion.