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Our news, Overview of the market for mineral fertilizers

Commodity online exchange Kyiv Mercantile Exchange – KME: the results of the last week of February in the markets of mineral fertilisers of Ukraine and the world.

Overview of news in the world fertiliser market. Main events of the week:
  • The urea producers in Egypt have again lowered the price of the goods.
  • The Middle East begins March with a drop in prices.
  • Ammonium sulfate in China slowly becomes cheaper

The price of urea in the Baltic ports decreased to 235-238 USD / T, FOB, crowd. Demand is low, buyers are waiting for the further decrease, so the market is reduced in volumes.

A real panic among the suppliers began in Egypt, despite the fact that in Ukraine prices for urea are high, sales to the Black Sea region didn’t happen, and European buyers took a pause and wait for changes in the market. So urea was sold at prices below the expected 245-250 USD / tonne, with shipment for March. Only after the sale of the main volume of products the price returned to the level of 260 USD / T, FOB.

Manufacturers of urea in other sources try to keep the price. Chinese suppliers sold goods for $ 275-300 USD / T, FOB. Sales were made to neighbouring regions because in Latin America the price was too high, this region bought urea for 255-260. USD / T, CFR.

In the market for ammonium saltpetre demand is dictated by the proposal – the producers are fully focused on the domestic markets. In the Baltic States by the request of traders at the level of 170 USD/ t, suppliers provide a price of 180 USD / T, FOB. The Russian market gives hope for a fairly high level of export prices for March. 

It should be noted that in the market of complex fertilisers there is a revival, which is due to low prices for NPK and approaching the season in the temperate climate zone. All manufacturers in China, Tunisia, Saudi Arabia and Jordan work in full load.

NPK 16:16:16 is offered for 310-320 USD / T, FOB. Price for Ukraine has risen to 345-350 USD / T, Russia and Belarus – 375 USD / T.

Even phosphate fertilisers fell in price in some regions, however, the average price in the Black Sea is less than 400 USD / T, FOB, for monoammonium phosphates did not decrease. The general pressure on prices can lead to cheaper superphosphates.

Overview of the news in the Ukrainian fertiliser market. Main events of the week: 
  • The OPP postponed the launch for three days
  • In Cherkasy, KAS works at 110% capacity
  • Salt becomes the top product, demand is high in all regions
  •  In Odessa are already completing the addition of saltpetre

Odessa port plant postponed the launch for technical reasons. OPP plans to launch after February, however, the first shipments of goods to the plant should be completed in early March. The energy equivalent spent almost full advance payment for OPP services. So, the State Property Fund does not exclude the possibility of transferring the plant to a state-owned enterprise that works with the agro-sector, which may be the Agrarian Fund or the Naftogaz of Ukraine.

Cherkasy Azot has loaded production of CAS for 1600 tons per day. It is even more than the planned capacity of 1500 tons per day. The plant came out with full capacity for ammonia, saltpetre and CAS. Urea production is not high yet, but technical problems can be solved by the end of the year. Even this volume is enough to cover the market. 

We are waiting for the launch of OPP, we have production of Dnipro Azot – 60 thousand tons per month, together, all the plants completely cover the demand for urea in the Ukrainian market.

In the market of integrated fertilisers, everyone expects an inflow of cheap ammophos from Russia and the launch of Sumykhimprom. Agro BC is operating actively with Belarusian integrated fertilisers and suppliers of Grodno Azot. The Belarusian product is limited in volumes, especially urea and CAS, so traders have begun to look for volumes from Lithuania, there are several CAS deals from Lithuania, saltpetre will be imported.

NPK fertilisers are still offered cheaply, an increase in prices is expected in March when traders will start to buy complex fertilisers for a spring sower.

In general, the fertiliser market is very active, in the Odessa region saltpetre adding finishes, most buyers are starting to ask for NPK fertilisers and phosphate fertilisers. It not only does not surprise agrarians but also makes hurry to buy for the season.

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 2018, the total turnover of trades on Kyiv Mercantile Exchange exceeded UAH 2.6 billion.