Commodity online exchange Kyiv Mercantile Exchange – KME: the results of the second business week of February in the markets of mineral fertilisers of Ukraine and the world.
Overview of news in the world fertiliser market. Main events of the week:
- A significant drop in the price of diammonium phosphate did not push the fall in prices for other phosphate fertilisers
- Egyptian producers sold120 thousand tons of urea during the week, the price is much lower than the previous one
- Urea is cheaper, but the Russian product is very devalued
Ukrainian producers do not rule out the export of urea in March. Currently, all export volumes for February are sold out. The domestic market offers about 80 thousand tons. It is possible to launch an IPO next week.
The price for urea in the Baltic Sea has reached 240 USD / t. Suggestions from individual traders are already at the level of 235 USD / t, while such low prices were not marked. Prices for urea in the Black Sea are at 255-265 USD / T, FOB. Maybe in March, the price will drop to 250 USD /T.
Arab countries are also forced to cut prices for urea proposals. For March the goods are offered for 270 USD /T, FOB, while traders ask for 262-265 USD / T, FOB.
Ammonia prices continued to decline after a short-term stabilisation. Quotes in the Black Sea for March amounted 280-285 USD / T, FOB. Traders set prices up to 280 USD / T, FOB. The world market shows a lower level of 10-15 USD / T.
The hard situation with potassium chloride, the world market prices have risen, and the market in Eastern Europe began to actively purchase NPK fertilisers with high potassium content. So, we can expect weak sales of potassium chloride in regions close to Ukraine.
CAS during January fell by 14% in the Black Sea.
Overview of the news in the Ukrainian fertiliser market. Main events of the week:
- Ammonium saltpetre is actively sold both from warehouses and wagons
- DniproAzot began to pack fertilisers in big-bag directly at the plant
- Urea will be imported from Turkmenistan
- The scarcity of ammonium sulphate remains
The difficult situation with ammonium sulphate due to lack of goods from producers, the scarcity was formed in January, prices have risen by 100-200 UAH / t and the product is offered for 8200-8300 UAH / t CPT. The Ukrainian sulphate of coke-chemical origin in the market is very small. So the imported product dominates because Sumykhimprom does not produce ammonium sulphate.
Sumykhimprom plans to start production of NPK 15:15:15 and NP 12:24. Currently, raw materials are purchased.
Ammonium saltpetre beats sales records every day. The good in the market is enough, although it is unevenly distributed. Price in the south – 10100-10200 UAH / t, port, with delivery – from 11000 UAH / t, in warehouses – 11300-11800 UAH / t. It is important to note that farmers do not trade for the saltpetre. This means that the market is spot-worthy and fairly voluminous. It is known that farmers keep large volumes of corn for export, they buy fertilisers right after the sale. It can be expected that the price of saltpetre in some cases in the warehouses will reach 11800-11900 UAH / t.
DniproAzot already packed urea in its own warehouse. This is very good, because the plant packages a warm “fresh” product, which is much better preserved, the granule does not lose its properties. At the same time, the price for urea does not exceed 11300 UAH / t, the plant is in runs.
The average price for a product in the regions is within the limits of 11900-12000 UAH / t, the wagon.
The first large batch of Turkmen urea in 25-30 thousand tons will appear in Ukraine in March. By that time, the market will be saturated with Ukrainian urea. However, this will not be a reason for lower prices. It is expected that the season in Ukraine will end with a price of 11400-11500 UAH / t, CPT. This year, urea will be sold until May holidays.
Also, the situation in the CAS market forces to think about traders. After all, the market is active, world prices are falling, but traders will not risk buying large volumes for Ukraine, so we will observe the development of events!
Ammonium sulfate went up to 8 200 UAH / ton, CPT. Price growth is seasonal. Prices for the other fertilisers in Ukraine remain relatively stable.
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. During 11 months of 2018, the total turnover of trades on Kyiv Mercantile Exchange exceeded UAH 2.6 billion.