The Covid-19 pandemic has caused a lot of difficulties to fertilizer production in many countries. In addition, the price of input materials and logistics cost have both increased to record levels, causing global fertilizer prices to accelerate.
Specifically, the FOB price of urea in the Black Sea region has increased to 420 - 435 USD/ton - the highest level since 2013; that in China is 435-445 USD/ton while the figure for the Middle East is 450-460 USD/ton.
Besides, in July, the supply from major urea manufacturers continued to decrease because many factories carried out maintenance, and Chinese exporters stopped bidding, causing urea prices to increase. Order for August are being offered at 470-480 USD/ton FOB.
Following the same pattern, the world potash fertilizer price in May also increased in the context of tight supply and some geopolitical fluctuations. Some major distributors have stopped offering bids.
Accordingly, the EU is expected to impose sanctions on imports from Belarus, causing the price of this item to escalate, and the delivery of potassium orders is also not guaranteed. In Southeast Asia, the bid price is 400 USD/ton CFR for standard mop.
In particular, phosphate is the fertilizer whose prices experienced the strongest increase in recent months. The fear of China's increase in export tax and strong demand in India has kept the price of DAP fertilizer in this country at 590 USD/ton CFR. Phosphate prices are forecast to continue to increase in China, which offered DAP shipments in July at a higher price than June, and many suppliers have temporarily not offered August delivery prices.
Fertilizer prices in Vietnam are forecasted to continue to increase in the coming time due to the influence of the increasing momentum of world prices.
According to a survey, prices of domestically manufactured fertilizers including nitrogen fertilizer and DAP are about 1-2 million VND/ton lower than that of imported fertilizers.
According to statistics from the General Department of Customs, Vietnam's fertilizer exports in the first six months of 2021 reached 438.79 thousand tons, with a turnover of 154.9 million USD, up 26.4% in volume and 56. 1% in turnover over the same period in 2020.
The average export price of fertilizers of all kinds in the first 6 months of 2021 reached 353 USD/ton, up 23.5% over the same period in 2020.
Vietnam mainly exported fertilizers to Cambodia (export volume to this country accounted for 62.2% of total fertilizer exports). In addition, the export of fertilizers of all kinds to many markets such as the Philippines, Mozambique, Korea, Taiwan also increased in the first 6 months of 2021.
In contrast, exports of fertilizer to Myanmar decreased by 80.4% in volume and 73.3% in turnover over the same period in 2020; to Thailand decreased by 54.5% in volume and 35.6% in turn over.
Statistics from the General Department of Customs shows that fertilizer imports into Vietnam in the first 6 months of 2021 reached 2,217 million tons, with a turnover of 612.7 million USD, up 17.8% in volume and 30.9% in turnover compared to the same period in 2020.
The average import price of fertilizers of all kinds to Vietnam in the first 6 months of 2021 reached 276.4 USD/ton, up 11.1% over the same period in 2020.
China was the largest supplier of fertilizers of all kinds to Vietnam in the first 6 months of 2021, with import volume reaching 1 million tons, and import turnover of 281.1 million USD, up 22.7% in volume and 40.8% percent in turnover over the same period in 2020.
In addition, Vietnam also imported many kinds of fertilizers from Russia, Japan, Israel, and Belarus with the import volume of 184.7 thousand tons, 147.3 thousand tons, 135.3 thousand tons and 127.2 thousand tons, respectively.
Top 10 largest fertilizer importers in Vietnam