Commodity online exchange Kyiv Mercantile Exchange – KME: the results of the first week of August 2019 in the markets of mineral fertilisers in Ukraine and the world.
News overview in the world fertiliser market. Main events of the week:
- In China, suppliers began to cut prices for September
- Quite large quantities of urea were purchased by Brazil, including from Ukraine
- GrodnoAzot sold 25,000 tonnes of granulated urea in the Baltic to France
- In India, the government has subsidized 3.3 billion USD in phosphorus fertilisers.
The highest activity in the urea market was observed in Brazil, where ship batches of goods were purchased. Brazilians preferred Baltic and Ukrainian goods. The sale was priced at 285-287 USD/t, CFR.
Brazilians will no longer be able to receive Iranian urea, this news has led to a wave of demand, but in any case, does not cancel the mood for lower prices. The goods to Brazil were sold from Nigeria, there are offers from other countries in Africa. The demand for urea in other Latin American countries remains high.
GrodnoAzot on the tender was able to sell granulated urea to the company “Dreymour” in France, the product was sold too expensive as for August – 270 USD/t. Other manufacturers are already offering Baltic urea for 255 USD/t, FOB.
Chinese urea suppliers have started making discounts. So far, the product can be bought not less than for 277-278 USD/t. New prices are expected in a week – 274-275 USD/t, FOB.
In the market of Southeastern Asia the Indonesian producer “Kaltim”, which managed to sell a batch of 30 thousand tons of granulated urea at the price of 295 USD, was noted last week. US/t, FOB.
According to the Info Industry, the Indian government provided a subsidy to farmers of 3.3 billion USD. This will offset the cost of nitrogen fertilisers by 0.27 USD/kg, phosphorus – by 0.22 USD/kg, potassium fertilisers by 0.16 USD/kg.
An outbreak of fertilizer sales in India and an increase in current demand are expected, as demand was postponed in July due to expectations of compensation rates.
News overview in the Ukrainian fertiliser market. Main events of the week
- In Ukraine, agro holdings buy mainly phosphorus fertilisers
- Odessa Port Plant will send all production to export
- According to preliminary estimates, in July about 150,000 tons of saltpetre were shipped from factories
- After rising NPK prices, their sales slowed down
Agroholdings in Ukraine buy large volumes of mainly phosphorus fertilisers. There is a high demand for high phosphorus NPK. The most popular are sulfoammophos and triple superphosphate. Prices for these fertilisers increased by only 1500 UAH/t, while for ammophos – by 2-3 thousand UAH/t.
Traders bought three ships with imported ammophos in the summer, and as for now, almost everything is sold out. The situation with sulfoammophos is similar.
Odessa Port Plant offers urea only for export, all volumes were bought by Dreymur. Part of the goods will go to India and possibly to Brazil. The plant planned to release in August 72-75 thousand tons of urea, ammonia is not expected. Because two units of urea work on one unit of ammonia. Ammonia is not enough to fully load both units.
A grand unloading of UkrAgro NPK warehouses took place in Ukraine. Ostham was able to sell and store at least 150,000 tonnes of saltpetre to traders, monthly production volumes about the same. This means that the product is already being loaded for storage for the winter and for spring introduction. Thus, the Ukrainian industry started operating in the spring season.
Agrarians are in no hurry to buy saltpetre. Everyone is expecting a price reduction to 6500-6800 UAH/t, the factory. Currently, such reduction is only possible for imported saltpetre in October, so Ukrainian producers are unlikely to raise prices by the end of September.
After the price increase for the Belarusian NPK by 65 USD/t, sales slowed down, in some regions almost stopped. Warehouse sales are active, but they mainly buy high potassium NPK in the west and high phosphorus in the east.
Experts of IA “Info Industry” expect the price adjustment for NPK due to the appearance of imports from Greece and Turkey. NPK 15:15:15 already sold at 13600 UAH/t, CPT, while Belarusian NPK 16:16:16 for 14000-14200 UAH/t, CPT.
The situation with NPK with high potassium is similar. There are already products from Poland (6:20:30 and from “Belkaliya”). There are first sales from Norway and Jordan.
The 2019 season will be delayed until the end of October, so the market will continue to adjust.
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 end of May 2019, the total turnover of trades in Kyiv Mercantile Exchange exceeded UAH 6,3 billion