Commodity online exchange Kyiv Mercantile Exchange – KME: the results of the business week (January 7 – 11) in the markets of mineral fertilisers of Ukraine and the world.
Overview of news in the world fertiliser market. Main events of the week:
- In the world market of fertilisers, activity wakes up, prices remain low
- Egyptian suppliers sold all volumes of urea for January, prices raise
- The Indian company MMTS will come out with a tender for 800 thousand tons of urea
- There is a failure of prices on the world market for ammonia
The world ammonia market has occasionally shown lower product prices than for urea. Now in the Caribbean Sea, the price for the ammonia is 250 USD / T, FOB, and urea in the US and the Caribbean islands costs 283 USD / T, FOB.
Indian state-owned company MMTS enters the market with the purchase of 800 thousand tons of urea for February. It can already increase prices in the region. Recall that China significantly reduced the duty on exports of nitrogen and other fertilisers.
In Egypt, urea is being sold for February, prices start at 300 USD / T, CAS sales are expected for February. Together with Turkish producers, the Egyptians raised prices on the basis of demand in the EU.
In general, the fertiliser market has intensified, mostly interested in cheap urea. High activity in Mediterranean countries. North Africa gets a high price when it sells to Europe. The situation in the Baltic States has not changed, prices are growing slowly – 280-285 USD / T, FOB.
Overview of the news in the Ukrainian fertiliser market. Main events of the week:
- DneproAzot has sold the export of urea
- Ukrainian producers have asked for special duty for urea
- Cherkasy boosts ammonia production to its fullest
DneproAzot sold 25 thousand tons of urea for export. The buyer is Ameropa company. The goods are shipped now, the port is Nikolaev. Prices for export urea in Ukraine do not exceed 280 USD / T, FOB. In Ukraine, the goods are sold for 11 000 UAH / t, invasive, FCA-plant.
The situation in the urea market in Ukraine is not favourable for producers. They are forced to appeal to the Cabinet of Ministers with a request for the imposition of special import duty on urea. No response from the government has been received so far. At present, duties apply only to nitrogen fertilisers from Russia.
The action of special duty is one year, such practice in the fertiliser market has not yet been.
Cherkassy Azot plans to launch another ammonia unit on January 16, after which the plant will operate at 88-90% of capacity. At present, the plant has not yet launched one aggregate of saltpetre, and the production of CAS has been unloaded by half.
Both Ukrainian saltpetre producers sell about 90-95 thousand tons of saltpetre per month to the Ukrainian market. Rivne Azot sells up to 30 thousand tons of limestone nitrite, the wholesale price of saltpetre increased in January to 11 300-11 400 UAH / t, CPT-station of the buyer. In the warehouses, the price remains unchanged. Currently, some Ukrainian companies began to pack saltpetre in bags. This suggests that they are preparing for high demand in the retail segment.
The NPK fertiliser market is unchanged, the production of nitroammophos is expected on Sumykhimprom. According to the Info Industry, the plant is still insufficiently supplied with raw materials. The main import of nitroammophos comes from Dorogobuzh and Gomel Chemical Plant.
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. During 11 months of 2018, the total turnover of trades on Kyiv Mercantile Exchange exceeded UAH 2.6 billion.