Urea and saltpetre decreased in price. NPK fertilisers are bought actively

Our news, Overview of the market for mineral fertilizers
купить минеральные удобрения в украине

Commodity online exchange Kyiv Mercantile Exchange – KME: the results of the third week of April 2019 in the markets of mineral fertilizers in Ukraine and the world.

News overview in the world fertilizer market. Main events of the week:
  • At the tender in India – the lowest price is from Iran.
  • Chinese exports of urea are absent, it is a factor of stability.
  • World prices for phosphate fertilizers began to decline.

The main characteristic of the urea market in April is stability. The Indian tender will not see offers from China, which is a positive signal for traders. Nevertheless, in its place claims to Iranian urea. At the moment, this product is rated at the lowest – 250-251 USD/T, CFR, India. At the same time in Turkey, a batch of 40 thousand tons of Iranian goods sold at a price of 240 USD/T, CFR.

The Indian tender was held on April 3, until May 17, it is necessary to put more than one million tons of urea. The first offers are 251.4 USD/t, West coast and  262.4 USD/t, East Coast Indian Peninsula.

In April, China will not export urea. This is a great pleasure for traders who have stocks of expensive goods and expect to sell them in Asia at the background of India’s purchases.

In Latin America, urea suppliers report a drop in demand compared with last year. The same offer prices do not exceed 278-279 USD/T, CFR-Mexico and 256-260 USD/T, CFR-Brazil.

It should be noted that the price of phosphorus fertilizer slips significantly down. Especially becomes cheaper diammonium phosphate in the USA. In Brazil, prices remain at 394 USD/T, CFR. Triple superphosphate in North Africa is estimated at 335-337 USD/T, FOB.

News overview in the Ukrainian fertilizer market. Main events of the week:
  • The Ukrainian saltpeter became more accessible at 2000 UAH/t.
  • Urea, too, fell by 1000 UAH/t.
  • This year, the popularity of NP-fertilizers is lower, but actively buy NPK is bought.
  • The deputies appealed to the customs officers and the prosecutor’s office for insufficient control over the import of fertilizers.

At the end of March, the saltpeter dropped to a level of 8800-9000 UAH/t, CPI. At present, ports goods have been already sold for 8200-8300 UAH/t, FCA. Such a price became possible after queues decreased at Ukrainian plants, and the gas price for April allowed producers to lower prices for nitrogen fertilizers.

Together with saltpeter, urea became cheaper, which is sold already for 2 weeks in advance. Manufacturers want to sell as much as possible more goods in order not to remain stocked volumes. At the moment, the Ukrainian market allows you to sell goods for 95-97 USD/t is more profitable than exports. In fact, for many manufacturers, exports are unprofitable because of the high prices for gas.

As prices for nitrogen fertilizers became cheaper a measure that will not affect the market since the main volumes have already been purchased and in most regions have been introduced (on the saltpeter). The adding of urea will last until the May holidays. It is important to understand that just after Easter, all nitrogen stops selling, the agrarian buys from this time only complex fertilizers. To feed, occasionally KAS, urea and ammonium sulphate.

NP fertilizers are being bought worse than last year. In the spring of 2018, the price of phosphorus increased and was higher by 15-20% than in 2019. However, demand was shrinking. At that, they buy inactive and NPK-fertilizers.

MHP Holding even came out with a tender for the sale of fertilizer residues. This suggests that farmers are reluctant to leave stockpiles, knowing that the price of individual NPKs and phosphorous will decrease.

For example NP 10:32 Dnipro’s mineral fertilizer plant fell from 15,900 to 14,000 UAH/t, the plant. Ammophos fell to UAH 17,000/t from UAH 19,000/t, CPI.

Deputy Robert Gorvat appealed to the heads of Prosecutor’s Office, NABU and the police, with a request to check importers of fertilizers, which, he said, use import schemes in violation of Ukrainian and world legislation.

Incineration is the replacement or concealment of documents on the origin of fertilizers. The deputy asks the DFS and other authorities to deal with the already imported goods. So wait for importers to check.

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. In 2019, the total turnover of trades on Kyiv Mercantile Exchange exceeded UAH 4.5 billion.