Commodity online exchange Kyiv Mercantile Exchange – KME: the results of the business week (December 3 – 7) in the markets of mineral fertilisers of Ukraine and the world.
Overview of news in the world fertiliser market. Main events of the week:
- All types of nitrogen fertilisers are losing value in the world market
- Price drops affected monoammonium and phosphate diamonds
- Prices for NPK are stable, since January the first increase in value will be possible
- Political exacerbation may affect the passage of ships through the Bosphorus, at the same time, inspections of fertilisers from Belarus have started.
The crisis in the Azov Sea may also turn over into the Black Sea. The EU is already threatening with more strict sanctions. Ukraine began to stop customs shipments from Belarus and all loads of bulk chemicals from Russia. All goods are sampled, while importers are asked to pay a fee of 43%, but this is not a reason to release the cargo. As of Tuesday, only 200 Ukrainian railroad wagons from Belarus have accumulated in only three Ukrainian stations, and there are at least 100 wagons on two stations from Russia. Rail import is completely stopped.
After the Indian tender, all urea producers are acting in the price. First of all, it is Russian suppliers and manufacturers of goods from the Middle East. Currently, the Baltic Sea sell urea for $ 280 per tonne, a decrease of $ 10 per tonne occurred in a week and is not final. However, the volume of the proposal is not so much. In Brazil, there are commodity bundles that came from Europe and remained unsold.
It should be mentioned that potentially Brazil can buy at least 300 thousand tons of urea in the near future, the first 100 thousand tonnes have already been purchased, but trade is at the level of 305 – 307 USD / T, CFR (Buyer Deals)
The market of the ammonium nitrate is the same. Prices began to decrease – $ 170-175 per tonne, FOB for the end of December. Here, producers are dumping the surplus of goods that were not bought by Eastern European buyers, primarily Ukraine and Belarus.
In the market of phosphate fertilisers, the drop in prices was only $ 5 per tonne. Nevertheless, the market did not intensify, remaining in a zone of discomfort. In the US, diammonium phosphate can be bought for $ 420 per tonne, FOB. Monoammonium phosphate, having fallen in price, has crossed the bar of $ 400 per tonne – $ 398-399 per tonne, FOB.
Overview of news about mineral fertilisers in the Ukrainian market. Main events of the week:
- OPP began to be preserved
- Dneproazot has not been able to start for the fifth time, waiting for launch next week
- In the city of Cherkassy KAS-28 is being sold, in Rivne increase of nitrate production takes place
They made a lot of noise about import stops at the border, but farmers did not rush to buy the saltpetre. At the moment, all of the saltpetre comes from the sea, through the ports. In ports of Ukraine there are about 40-45 thousand tons of different saltpetre, still, limestone arrives. For the most part, supplies are from Georgia, Turkey and Bulgaria. Bulgarian product became the most affordable – $ 242-260 per tonne, CFR-port. The most expensive is Turkish saltpetre from the company “Toros”. There is a lot of saltpetre containing 32.7-33.4% of nitrogen in the market, although according to DSTU the content should be 34.4%. There are huge problems with the export of saltpetre and other fertilisers from the southern ports because there is a shortage of freight wagons.
In Cherkassy, they have started production and already sell KAS-28, its price is less than 8500 UAH / tonne, CPT. Traders have not yet actively bought up goods, it is more interesting to farmers because it does not freeze even at the temperature of -10 degrees in wagons. The first 5 thousand tons have already been shipped. At Rivne Azot, production of saltpetre is increasing. At present, production of limestone has increased, the product is already sold for 8300-8400 UAH / tonne, CPT. The launch of the Severodonetsk plant is possible. The whole deficit of nitrate without the work of all three plants in Ukraine is impossible to cover. The price for saltpetre is still at the level of 10900-11100 UAH / tonne, CPT. In the south, the Turkish product was sold for 10200-10400 UAH / tonne, FCA.
According to preliminary data from the Info Industry, Sumykhimprom will soon begin to produce NP 12:24 – available starting fertiliser for Ukrainian agrarians. The plant is already receiving raw materials, NPK fertilisers are not yet planned to be produced because of the rising costs of potassium. The price of a product should not be higher than 9000 UAH / tonne, CPT.
Odessa port plant began to be preserved, despite the fact that the “gander” has changed, he did not give precise plans and orders for production. Probably because the world market price for urea and ammonia is decreasing, and for the domestic market the plant is running slowly.
The price for urea is very interesting at this moment – 11400 UAH / tonne, CPT. This has increased the sales of Cherkas’ urea several times. The volumes of production for the second half of January 2019 are already being sold.
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. 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.