Kyiv Mercantile Exchange – KME Online Commodity Exchange: results of the first week of May 2019 in the mineral fertilizer markets of Ukraine and the world.
News overview in the world fertiliser market. Main events of the week:
- The Indian tender attracted a limited offer and showed higher prices
- Saltpetre has risen in the Black Sea
- Ammonia prices in the US dropped sharply
In the US, ammonia is sold for 18 USD/t is cheaper than in April. May always passes with a drop in the price of ammonia, but this year prices have not fallen like in the past. It should be noted that, with regard to the price of urea and saltpetre, ammonia is very cheap. The low price of ammonia is reflected in closing capacities. Currently, most of the facilities in Trinidad are working, so it is logical that prices have been reduced. It should be noted that prices for ammonia in the Black Sea fell by only 10 USD/t, so for Turkey is more profitable to buy ammonia in Trinidad, for the sale to the nearest markets Russian producers need to further reduce prices.
The low cost of ammonia as a raw material is beneficial for Ukrainian producers of saltpetre. At present, ammonia imports are twice as cheaper than those produced from gas in Ukraine.
The saltpetre in the Black Sea has increased in price due to a number of sales of Bulgarian and Turkish products to markets in India and Latin America. In May, the saltpetre increased to $ 188-190 USD/t. Instead, prices for saltpetre in Poland have fallen. This is due to the rapid reduction in the purchase of ammonium nitrate by Europeans.
In the urea market, we see a reduction in the supply of large volumes. Indian tender of MMTS company could not attract proposals for 800 thousand tons. At present, only half of the supply is possible from the Middle East. Therefore, prices from other manufacturers may be higher, or the tender will be postponed. Already, the price of urea has increased by 20 USD/t. Even Pakistan managed to buy 100 thousand tons of urea.
Other countries in the region suffer from drought, which will reduce the purchase of urea. Yes, in Thailand, water levels in rivers are 30% lower than normal. This factor has already affected the purchase of NPK fertilisers in Southeast Asia.
News overview in the Ukrainian fertiliser market. Main events of the week:
- NPK purchasing season began in Ukraine. Interest is in all brands
- Prices for nitrogen fertilisers have decreased and will continue to decrease at the beginning of summer
- On May 21-25, a forum for plant nutrition will be held in Turkey, where the main suppliers of fertilisers in Ukraine will be gathered.
Agrarians’ activity in the purchase of NPK is only increasing. Although agroholdings ask about NPK and above all NPK 16:16:16, the high season will begin in June. At the moment, Russian producers did not sell even 20 thousand tons of NPK in May, which suggests high prices for nitro-ammophos. Agroholdings expect prices not to exceed 280-290 USD/t, DAF. This is still unachievable, but it is able to increase purchases in several times. The NPK savings can make buying less nitroammophos and increase NPK purchases 10:26:26. Such brands as 8:19:29 are still quite actively bought, even though they are for autumn.
Prices for nitrogen fertilisers are already falling to the level of 7200-7400 UAH/tonne, the supplier station. Prices that are already recorded for the summer on Polish litter are below this level. Nevertheless, the Ukrainian saltpetre is sold for 7,500 UAH/t, CPT. The decrease is slow, it is due to stocks of more expensive product.
Urea is sold at prices of 9800-10000 UAH/t, CPT. While pricing is flexible in June, there is no single price. If you buy a large batch, attractive prices are also offered. The only minus is that in summer the consumption of urea does not exceed 10% of the annual. The main peak of consumption is April or first half of May.
Questions about the consumption of nitrogen fertilisers, their prices and the cost of finished agricultural products will be raised at the Turkish Forum for Plant Food, which will be held on May 21-25 in Antalya. The forum will attract Turkish fertiliser producers, traditionally active participants – Ukrainian traders and major fertiliser producers in Ukraine. The event is a sign for the market and allows you to draw conclusions from the spring season, having prepared for the autumn.
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. As of March 2019, the total turnover of trades in Kyiv Mercantile Exchange exceeded UAH 4.5 billion.