Urea market: Prices are getting "hot"

Following the increase in world urea prices, domestically, nitrogen fertilizer prices in many areas of the Mekong Delta have increased again, the main reason being that the 2013-2014 winter-spring rice crop has begun, increasing consumption demand.

Fertilizer prices in the domestic market have begun to increase.

World prices rise again

Currently, the price of urea has increased quite strongly in many regions. Granular urea in Southeast Asia is priced at 320-325 USD/ton, an increase of 38-45 USD/ton compared to mid-October; the price in China is 325-335 USD/ton, an increase of 40-45 USD/ton; the price in the US has also increased by 20 USD/ton, to 304-315 USD/ton compared to mid-October.

The price of granular urea also increased by an average of 35-50 USD/ton compared to the price 1 month ago. As of November 14, 2013, Chinese urea cost 320-330 USD/ton; in the Middle East, it cost 320-325 USD/ton; in Southeast Asia, it cost 315-320 USD/ton.

Mr. Nguyen Hac Thuy - General Secretary of the Vietnam Fertilizer Association - commented: In the coming time, urea prices on the world market may continue to increase due to high demand while supply is tightening. In November, India, Pakistan and Bangladesh will hold urea purchase auctions with a total volume of over 2 million tons. Meanwhile, China's urea reserves are only about 1 million tons. At the same time, the urea industry in Egypt is also facing problems with natural gas supply.

According to experts, after a long period of silence, urea prices have begun to "heat up" again due to increased demand for reserves from some agents and traders, while many large urea factories in the world have not yet recovered. One of the world's largest urea "factories", China, is facing a shortage of natural gas supply in the Sichuan, Chongqing, Yunnan, Guizhou regions...

Currently, in many places in the Mekong Delta, the 2013-2014 winter-spring rice crop has been planted, the demand for fertilizer has increased, so the price of fertilizer has increased. Currently, fertilizer businesses are increasing their inventory, pushing up the price of fertilizer.

Domestic prices increased slightly

Following the increase in world urea prices, domestically, nitrogen fertilizer prices in many areas of the Mekong Delta have increased again, the main reason being that the 2013-2014 winter-spring rice crop has begun, increasing consumption demand.

In the Mekong Delta region, Phu My urea is currently distributed from level 1 agents to level 2 agents or sold to farmers at a price of 8,400-8,600 VND/kg, while the factory sells to level 1 agents at a price of 7,400-7,600 VND/kg, an average increase of 200 VND/kg compared to 1 month ago.

Ca Mau Petroleum Fertilizer Company Limited (PVCFC) said that currently, Ca Mau granular nitrogen fertilizer in the Mekong Delta has increased by an average of 200 VND/kg compared to the price 1 month ago, to 7,800-7,900 VND/kg.

Just a month ago, when urea prices were low and supplies were abundant, fertilizer dealers at the Mekong Delta were not interested in warehousing and storing goods for fear that prices would drop further. Now, dealers are rushing to stock up to prepare for the winter-spring crop.

According to baocongthuong