Commodity online exchange Kyiv Mercantile Exchange – KME: the results of the third 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:
- The surplus continues to grow, India has delayed the tender
- KAS again rises in the EU
- NPK went down in price, while ammophos is not sold very actively
Urea continues to fall in price worldwide. Delaying India’s tender by the end of September, so for three weeks, forces suppliers to change their sales directions urgently.
Cheapening has taken place in Indonesia and the Middle East, the goods are getting cheaper and in the final markets. Brazil and Mexico were buying goods in the Western Hemisphere. In the East, goods were purchased by Taiwan and Sri Lanka. There is little demand in the Eurasian regions, the European market is showing higher prices. Instead, powerful volumes that will be released as of September 20 are not yet been purchased by traders. A surplus could halt production, although a decline was expected.
In Europe, prices for KAS and individual nitrogen fertilizers are rising. The price of KAS in North Africa is stable, while in the US there is a gradual resumption of trade. GrodnoAzot sold KAS to Eurohim for 145 EUR/t, FOB, prices in the EU exceeded 170 EUR/t, CPT.
The boom in the ammonium saltpetre market has begun in Europe. Manufacturers were able to stimulate demand so much that the quotes for nitrate fertilizers began to increase in October. The price is 185 USD/t, FOB was recorded in September contracts for Germany and France.
Phosphate fertilizers are rarely stable in sources, in the US and Brazil prices are gradually declining. This is primarily ammophos, the price of which is 320 USD/t, FOB-Baltic.
NPK and potash fertilizers have hardly changed in price, the market is relatively active and dynamic.
News overview in the Ukrainian fertiliser market. Main events of the week:
- Ukrainian fertilizers begin to be actively sold, primarily saltpetre
- Agri-products are successfully exported, prices have stabilised
- Phosphate fertilizers and NPK sales are falling rapidly in Ukraine
Last week’s hit of sales was the ammonium saltpetre. Further price reductions to 6900 UAH/t, CPT for wholesale parties allowed to move the market from the spot. Medium-sized agricultural enterprises also began to buy it. Partially because of the sale of part of the crop, partially be a use of the understanding the global trends in urea and saltpetre and price increases in the EU, farmers go to buy not urea or NPK, but saltpetre.
Production is charged at 140,000 tonnes a month, but such volumes may not sustain the market itself, which buys unevenly.
Urea production is also loaded at 70-80%. Export program in DniproAzot and Odesa Port Plant is underway.
DniproAzot and Cherkasy Azot are partially focused on the domestic market. Urea prices are 8000-8200 UAH/t, CPT. So far, lower prices do not correlate with exports. Moreover, growth in the world market will only increase prices in Ukraine.
Agro products are sold successfully and exported dynamically, by the way, the import of fertilizers now has fewer obstacles, customs clearance is faster. However, the purchase of fertilizers had low rates because of low solvency.
Imports of phosphorus fertilizers are declining rapidly. Partially because of the investigation and the reluctance to take risks, partially because of the slowdown in sales of phosphorus fertilizers in the Ukrainian market.
Info Industry experts estimate the situation as following: there will be the purchase of phosphorus (ammophos and diammophos) together with NPK will continue in mid-September, when the first wave of ammonium saltpetre purchases will take place. Instead, the resumption of large-scale purchases of urea by agro holdings was postponed to October.
The largest Ukrainian Agrochemical Forum will take place in Odesa between September 11 and 13. Two hundred and forty delegates from 5 countries have already been registered, the majority of participants are Ukrainians, including agro holdings, traders, producers and importers of fertilizers.
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 June 2019, the total turnover of trades in Kyiv Mercantile Exchange exceeded UAH 8,5 billion.