Commodity online exchange Kyiv Mercantile Exchange – KME: the results of the first week of May 2019 in the markets of mineral fertilisers in Ukraine and the world.
News overview in the world fertiliser market. Main events of the week:
- India redeemed 740,000 tons of urea at the tender
- Ammonia continues to get cheaper
- Prices of CAS grow on the world market
Urea suppliers unexpectedly received huge demand from Asia, the Indian tender allows further increase in prices. But the best news for Ukrainians was the fact that DneprAzot sold 52 thousand tons of urea in India through Ametopa. In the mid-2000s, Ukraine was one of the largest suppliers of urea to India, and in Vietnam it was the main supplier. Subsequently, China took control of supplies to these markets. At the moment, Ukrainian goods may temporarily be supplied to India, competing with gas produced one at a cost of 27-30 USD/thousand cube. m. At the same time, Ukrainian goods were bought at a price of 235 USD/t, FOB, the last batch.
Very strong purchases of urea took place in Egypt – 200 thousand tons a week, Saudi Arabia and Algeria also sold goods last week. At the same time, cheap goods go from Asia to Latin America. Iranian goods in May were sold for 260 USD/t, CFR in the ports of Brazil.
Iran will ship goods to China and Myanmar.
If the price of KAS at the end of April collapsed by 27-41% in the Black Sea and the Mediterranean, then in May, European quotations started to rise. And then in the Mediterranean region, where timely sales of the entire volume of KAS by Egyptian producers played a role. Currently, free KAS in the Mediterranean is difficult to find.
Against the background of expensive KAS and urea, ammonia is getting cheaper. The world price has fallen in the Black Sea due to excess supply. As of May, prices do not exceed 220-225 USD/t. Experts are inclined to predict a further fall in prices, but the market is already close to the lowest mark, which will inevitably affect the price of nitrogen fertilisers.
News overview in the Ukrainian fertiliser market. Main events of the week:
- In Ukraine, monsoons led to a complete water recovery
- NPK fertilisers are becoming cheaper
- Ukrainian chemists are set to resume production
- In April imports of ammonium, saltpetre decreased by 73%
Rainy weather allowed agrarians to stretch the season of adding saltpetre and urea. Nitrogen fertilisers cheapened slowly. The urea did not fall below 10400 UAH/t, CPT. The saltpetre price dropped to 8200-8400 UAH/t, the same price remained at the sale from warehouses.
Rains have increased the amount of moisture in the fertile soil layer, which instantly leads to the intensive appearance of weeds, so other problems for agrarians have appeared and the purchase of fertilisers has stopped. At the moment, more actively urea is bought, its price does not exceed 11200-11500 UAH/t, warehouse.
Russian suppliers are not in power to keep high prices for NPK fertilisers. Firstly, they buy very inactively, and secondly, competitors have already started to lower prices. Sumy’s fertiliser manufacturer Sumykhimprom came up with an offer to produce NPK, it’s 10:26:26 and NPK 16:16:16. Almost the entire volume of fertilisers immediately was bought by Eridon, according to preliminary information, the price of fertiliser prices for agrarian fell by 1000 UAH/t.
So, Sumykhimprom, as well as producers of nitrogen fertilisers, already have plans for the autumn and received carte blanche – cheaper raw materials. Currently, the production of saltpetre from imported ammonia is much cheaper than from gas purchased in Ukraine.
Imports of ammonium saltpetre in April decreased by 73%, according to the State Statistics Committee and IA Info Industry. The decrease was due to a reduction in demand from traders, a relatively high price for April, even during the rainy weather. Private farms did not make ammonium nitrate due to the fact that they could not get into the field, someone did not even have time to sow and will sow beans (soy).
About these and other issues will be held thematic discussions and performances at the Turkish Forum on Plant Nutrition, which will be held in Antalya on May 21-25, 2019. Among the participants of the forum are 70% of Ukrainian companies, five fertiliser companies from Ukraine, three manufacturers from Turkey.
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.