Commodity online exchange Kyiv Mercantile Exchange – KME: the results of the business week (December 31 – January 4) in the markets of mineral fertilisers of Ukraine and the world.
Overview of news in the world fertiliser market. Main events of the week:
- Traders are on vacation, but fertiliser manufacturers are actively offering products
- In January, the urea market will show a slight rise in prices
- Producers in the Middle East and North Africa have successfully sold the goods for January
- Phosphate fertilisers have no demand
The price of granular urea in the Baltic decreased to 274-275 USD / T, FOB. The transaction was priced at around 270 USD / T, FOB. Currently, manufacturers are actively offering goods for shipment in January. There is a lot of free product in Eastern Europe – less in Belarus and Poland, more in Russia.
Turkmen urea is actively offering. In January, the first deals on product delivery to the Black Sea and the Mediterranean are possible. At the moment, all Egyptian urea is sold out. One batch of 6,000 tonnes was sold to the Black Sea at a price of 305 USD / T, FOB.
In the US and Latin America, the market is still stagnant, but there is a rise in suppliers’ prices. At present, prices on the world market are same at all the suppliers. China – 280 USD/ T, USA – 280 USD / T, Middle East – 280 USD /T Lowest prices for monitoring data of Info Industry are in the Black and Baltic Seas – 274 – 277 USD /T.
Phosphate and complex fertilisers are bought in the final markets very inactive, surplus of goods forces manufacturers to make concessions. The largest buyers are India and China focused on their own markets.
Overview of news about mineral fertilisers in the Ukrainian market. Main events of the week:
- The customs clearance of fertilisers in ports has resumed
- In Ukraine, traders are on vacation, agrarians do not hurry with fertilisers
- Imports of urea in January will increase
According to the Info Industry, in January import of urea will increase, at least in twice. At the same time, Cherkassy Azot and Dniproazot are planning to produce another 100,000 tons. It is possible that by the end of March the urea deficit will be corrected.
In Nikolaev, after the New Year the customs clearance of fertilisers is completely restored. This is the last port where large volumes of imported fertilisers accumulated without registration. At present, all consignments undergo clearance after sampling for interim declarations, and after the performed examinations – on the import declaration (import40). These are the complexities of all the fertilisers suppliers, regardless of the country of origin of the goods.
Traders went on vacation until January 14th. The sale of fertilisers is minimized, in fact, sales are coming from warehouses. All market participants are watching actions around the IPF, which reported a crisis situation with personnel and funding. The board of the plant appealed to the Cabinet of Ministers.
At the moment, demand for nitrogens is the highest in the South of Ukraine. It has accumulated more than 250 thousand tonnes of nitrogen fertilisers only from traders. Agrarians of the region have already redeemed at least 100 thousand tons of fertilisers. Together with urea, saltpetre, KAS and ammonium sulphate, Ukrainians should buy at least 2.3 million tons in physical weight.
In December, Rivneazot restored the production of limestone-ammonium saltpetre. Product price is 8500-8900 UAH/ T, FCA / CPT. The plant can produce up to 40 thousand tonnes of this fertiliser. Taking into account prices, the product is very attractive to the consumer.
For reference: Kyiv Mercantile Exchange – the newest Ukrainian online exchange. Realizes the world standards of the exchange trades 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.