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Making sense of Vietnam market
1
WHAT WERE OUTSTANDING OVER THE WEEK?
Urea market remained quite bearish,
urea futures slumped
STC’s June 22 tender did not achieve
the expected results on low offers
Urea prices in the local market of
China continued to plunge
Urea prices in the Central Region
rebounded on tight supply
Urea prices at Bat Xat border gate fell
by about VND 200-300/kg
Fertilizer imports in June 2013 fell by
19.23% in volume and 23% in value
compared to the previous month
Weekly Report
Vietnam
Fertilizer
Market
(Week 24/06/2013 –27/06/2013)
ANALYSTS
Nguyen Trang Nhung
Dao Thi Dung
Tel: 84 4 7300 4550
Email:
Skype: nhung.agromonitor
daodungagm
_____________________________
Vietnam Market Analysis and Forecast
Joint Stock Company - Agromonitor
Room 1604, Building No. 101 Lang Ha
Street, Dong Da District, Hanoi
Tel: 84 4 6273 3596 /Mobile: 0943 411
411
Email: [email protected]
www.agromonitor.vn
Making sense of Vietnam market
2
WORLD & CHINESE UREA MARKET AND OUTLOOK
The world urea market this week was quite bearish, STC’s June 22 tender did
not achieve the expected result on low offers from STC. In addition, both
granular urea and prilled urea prices tended to decrease.
The June 22 STC tender attracted offers from 27 participants. A total of 3.945-
4.11 million tons were offered fully firm plus seller's options for an additional
1.345-1.425 million tons.
Previously, the market expected the price offered by STC at about US$ 320/ton
CFR; however, the offers were quite low at about US$ 303.33/ton CFR.
Ameropa was linked with the low number, but this is yet to be verified.
Suggestions of other low offers included Quantum at US$ 311.45/ton CFR and
Trammo at US$ 311.77/ton CFR.
At the end of the tender, STC did not get its expected results and continued to
extend its US$ 303.33/ton CFR counter to the nine companies that submitted low
June 22 tender-offers through 11:30hrs June 25. No acceptances had been
received at press time, and Ameropa had even declined to reduce the price for its
second lot from US$ 303.53/ton CFR to US$ 303.33/ton CFR. STC thus held a
mere 70,000 tons at the low price.
On the futures market, both granular and prilled urea prices reversed to
decrease after rising in the previous week
For granular urea in U.S. Gulf, prices fell for all futures over the week.
December futures alone were firm at US$ 318/ton FOB. June, July, October and
November futures at the end of June 26 session declined by US$ 4-6/ton from
the end of last week; meanwhile, August futures dropped by US$ 8.5/ton and
September futures plunged by US$ 12/ton.
Developments of granular urea futures in U.S. Gulf, US$/ton (FOB)
Date/futures June July August September October November December
26/6 314.50 308.50 306.00 306.00 312.00 314.00 318.00
25/6 317.00 315.00 312.00 314.00 318.00 318.00 318.00
24/6 319.50 314.50 313.25 315.25 318.00 318.00 318.00
Making sense of Vietnam market
3
Average price
this week 317.00 312.67 310.42 311.75 316.00 316.67 318.00
21/6 319.50 314.50 314.50 318.00 318.00 318.00 318.00
20/6 321.00 319.00 319.00 318.00 318.00 318.00 318.00
19/6 318.50 319.00 319.00 318.00 318.00 318.00 318.00
18/6 320.00 315.00 317.00 318.00 318.00 318.00 318.00
17/6 320.00 315.00 315.00 318.00 318.00 318.00 318.00
Average price
last week 319.80 316.50 316.90 318.00 318.00 318.00 318.00
Changes
compared to
last week
(2.8) (3.8) (6.5) (6.3) (2.0) (1.3) -
Source: CME
For prilled urea, on CME, prilled urea prices leveled off from the end of last
week for all futures. June and July futures continued to be unchanged on June 26
session at US$ 318 – 318.5/ton FOB while August and September futures fell by
US$ 5/ton to US$ 320/ton FOB.
Developments of prilled urea futures in Yuzhnyy on CME, US$/ton (FOB)
Date/futures June July August September
26/6 318.50 318.00 320.00 320.00
25/6 318.50 318.00 325.00 325.00
24/6 318.50 318.00 325.00 325.00
Average price this week 318.50 318.00 323.33 323.33
21/6 318.50 318.00 325.00 325.00
20/6 320.00 318.00 325.00 325.00
19/6 320.00 318.00 330.00 325.00
18/6 315.00 318.00 318.00 325.00
17/6 315.00 318.00 318.00 323.00
Average price last week 317.70 318.00 323.20 324.60
Changes compared to last week 0.80 0.00 0.13 -1.27
Source: CME
In the coming time, it is difficult to define a clear trend in the world urea market.
Demand may be still quite strong. In Pakistan, four local urea production plants
have to cut production or even stop production on a deficit in natural gas supply.
Accordingly, urea imports of Pakistan may increase. In addition, urea demand in
Making sense of Vietnam market
4
India and other countries may also experience a soar. Meanwhile, supply remains
quite ample, especially when China starts to enter urea low-export tax window in
July. Some urea producers in China are currently shipping urea to the U.S., but
they have been unable to sell urea, which partly impacts urea supply in the U.S.
China
In the local market of China, urea demand remained low amid ample supply,
driving down urea prices. The imbalance in urea supply-demand in the local
market may continue to drive down urea prices
Urea supply and inventory in Shandong and Shanxi were quite high, resulting in
a severe urea surplus. Meanwhile, in the Northwest, the overall production
capacity of plants was quite low on tight gas supply.
Urea prices at plants in Shandong, Hebei and Henan for the first two days of the
week decreased by about CNY 20 – 40/ton from a week earlier and then leveled
off at CNY 1,700 – 1,750/ton until June 27. Meanwhile, in Anhui and Jiangsu,
urea prices were stable on June 24 and 25 at CNY 1,800/ton and CNY 1,830/ton.
However, on June 26, urea prices declined by CNY 70/ton and CNY 30/ton to
CNY 1,730/ton and CNY 1,800/ton and unchanged at these price levels until the
following days.
Average urea prices at plants in some localities of China, CNY/ton
Date Shandong Hebei Henan Anhui Jiangsu
27/6* 1,720 1,700 1,750 1,730 1,800
26/6 1,720 1,700 1,750 1,730 1,800
25/6 1,720 1,700 1,750 1,800 1,830
24/6 1,740 1,700 1,750 1,800 1,830
21/6 1,760 1,730 1,770 1,800 1,830
20/6 1,760 1,730 1,770 1,800 1,830
19/6 1,760 1,740 1,770 1,800 1,830
Source: fert.cn
Making sense of Vietnam market
5
Prices on June*: Projected
On export channel, many urea cargos shipped to the U.S. have not been able to
be sold. Export urea prices may continue to be revised down when STC’s tender
has a low offer of US$ 303.33/ton CFR. Accordingly, with a shipment cost of
about US$ 17 – 20/ton from China, the netback price in China will be about US$
283 – 286/ton FOB.
Last week, China rejected to supply urea at US$ 310/ton FOB and set a target to
sell urea at US$ 320/ton FOB; however, afterwards, China had to accept to sell
urea at US$ 300/ton FOB.
2. WORLD & CHINESE DAP MARKET AND OUTLOOK
DAP prices continued to be revised down in many regions and there were not
many transactions
Owing to the depreciation of Rupee, DAP importers of India were quite reserved.
Over the week, DAP prices of suppliers were about US$ 490 – 500/ton CIF.
However, there have not been any transactions at this price level.
DAP prices in the U.S. continued to be revised down to US$ 426/ton FOB.
According to a price quote from USDA, DAP prices in Illinois averaged US$
600/ton; and Southern Plains: down to US$ 550/ton.
China
The average DAP prices in the local market of China at the beginning of this
week were quite stable from the end of last week. However, on June 26
afternoon, urea prices reversed to drop by CNY 26/ton to CNY 2,880/ton.
Local DAP prices of China, CNY/ton
Date 26/6 25/6 24/6 23/6 21/6 20/6 19/6 18/6
Price 2880.00 2906.67 2906.67 2906.67 2906.67 2900 2906.67 2906.67
Source: sunsirs
Making sense of Vietnam market
6
3. POTASH MARKET
Potash prices continued to be low last week. According to a price quote from
USDA, retail potash prices in Illinois were US$ 520/ton.
Ural Kali and Belarus Potash signed a contract to supply over 1 million tons of
potash to India at US$ 427/ton. In January 2014, Urals Kali will sign a new
contract with India.
China
Chinese potash market remained quite bearish, some small import contracts were
defined in July. Especially, it is likely that contracts between China and suppliers
will be hard to be concluded in the coming month and will put pressure on the
spot market.
MOP prices in the local market of China this week inched lower by CNY 3/ton
from the end of last week to CNY 2,535.00/ton and were temporarily unchanged
until June 26.
Local MOP prices of China, CNY/ton
26/6 25/6 24/6 23/6 22/6 21/6
2535.00 2,535.00 2,535.00 2,538.33 2,538.33 2,538.33
Source: sunsirs
4. AMMONIA, UAN, SAN MAKRETS
Ammonia
Last week, ammonia prices in the world market dropped sharply in many
regions. In Yuzhnyy, ammonia prices fell by as much as US$ 35/ton to US$ 460
– 515/ton FOB; ammonia prices in Baltic also experienced an equivalent
decrease to US$ 470 – 525/ton FOB.
Making sense of Vietnam market
7
Ammonia prices in the world market, US$/ton
Baltic,
FOB
Yuzhnyy,
FOB
North
Africa,
FOB
Middle
East, FOB
India,
CIF
Southeast
Asia, CIF
Week (17-23/6)- 470 –
525
460-515 470-530 510 – 540 550-
580
467 – 635
Compared to
week (9-16/6)
-35 -35 -40 -15 -20 -58
Source: sunsirs
Fall prepay on the southwest Plains was as low as US$ 610/ton. Spot prices out
West aren’t that low, but some are at US$ 680/ton. Offers found by USDA last
week in Iowa and Illinois don’t yet show much of a reduction from spring highs.
Iowa was steady at US$ 882/ton, though the average in Illinois was down around
US$ 25/ton from its highs at US$ 866/ton, with some dealers there down to US$
750/ton.
UAN
Last week, UAN prices continued to be revised down. In U.S. Gulf, prices of
UAN 32% fell by US$ 4.5/st to US$ 240/st. Retailed UAN prices in the West
were US$ 350 – 380/ton for UAN 28%. As cited by USDA, prices of UAN 28%
in Iowa last week were around US$ 354 – 411/ton.
SA
Last week, the world SA prices rallied in Baltic while continuing to decrease in
other markets.
SA prices in some regions last week, US$/ton
Baltic,
FOB
Black
Sea
Southeast Asia,
CIF
Brazil,
CIF
Week (June 17-23) 145 145 160-165 180-185
Changes compared to week (June
10 - 16)
+5 -5 0 0
Source: fert.cn
Making sense of Vietnam market
8
DOMESTIC MARKET
Although domestic fertilizer demand tended to be weaker from several weeks
earlier, the demand was generally quite strong to serve summer-fall rice, fall-
winter rice, secondary crops and industrial crops. Volume of imported fertilizers
continued to be complemented in regions but with a small quantity. At Tran
Xuan Soan market, Southeastern region, Southwestern region, Central Region,
etc. there was still a tight supply of domestically-manufactured urea in some
localities over the week; urea prices rebounded after inching lower in the
previous week. Meanwhile, in the Central Region, although supply of Phu My
urea was also quite scarce, prices of Phu My urea generally remained quite stable
on weak demand. In Lam Dong, prices of urea were on the decrease. Prices of
other types such as NPK, SA and potash inched lower or temporarily leveled off.
Prices of urea reversed to go up on quite tight supply in the South
Urea supply is still being complemented in the South but with small quantity.
Volume of urea domestically manufactured is still quite tight while urea imports
have not been ample. Chinese urea was shipped to the South but the supply is
quite scarce. From early June to date, there has been no vessel carrying Chinese
urea arrived at Saigon ports but vessels carrying Indonesian urea and Philippine
urea constantly arrived at the ports. Specifically, at the end of a week earlier, one
vessel carrying 4,620 tons of Malaysian urea arrived at the port and it is
projected that this week, additional three vessels carrying 15,000 tons of urea
(including two vessels carrying 6,000 tons of Indonesian urea each and one
vessel carrying 3,000 tons of Malaysian urea) will arrive at Saigon ports.
Accordingly, prices of Phu My urea and Ca Mau urea rallied over the week
while there were very few transactions for Chinese urea.
It is projected that in the coming time, tight supply in some localities in the
region will likely be improved thanks to supply of domestically manufactured
urea when Phu My urea plant launches its products to the market as scheduled.
In addition, supply of imported urea will be also higher. Specifically, supply of
Chinese urea will be less tight because two vessels carrying about 9,500 tons of
Making sense of Vietnam market
9
Chinese urea are projected to arrive at Saigon port in the coming week.
However, demand for fertilizer to fertilize summer-fall rice will be on rise, so
fertilizer prices may be stable or even inch up in the coming time.
In the Central Region and Central Highlands, demand for fertilizers from
industrial crops was also weaker, so the demand did not put pressure on the
supply. In the Central Region, supply of Phu My urea over the week was quite
scarce; there was no supply of Chinese urea but vessels carrying Indonesian urea
constantly arrived at the ports. However, Indonesian urea was mainly shipped to
the Central Region on strong demand. Prices of urea in the regions temporarily
leveled off or even continued to inch lower over the week.
It is very likely that the above trend will be sustained in the short term when
demand does not rally robustly and a vessel carrying about 3,000-4,000 tons of
Phu My urea is projected to arrive at Da Nang port in the coming week. In
addition, another two vessels carrying about 4,000 tons of Indonesian urea is
also coming to the region in the coming time.
Prices of other types such as NPK, SA and potash in the South tended to go
down on quite ample supply amid weak demand. Prices of the items over the
week temporarily leveled off after dropping quite sharply in the previous week.
This week, two vessels carrying 12,000 tons of Philippine NPK bagged
are projected to arrive at Saigon ports. Accordingly, about 30,200 tons of
NPK will be imported through Saigon ports in June.
One vessel carrying 3,299 tons of Philippine SA bulk and one vessel
carrying 6,000 tons of Korean SA bulk arrived at Saigon ports. Therefore,
in June, SA imports through Saigon ports were 17,299 tons.
Universal Durban vessel carrying over 22,000 tons of Israeli potash
imported by Vinacam arrived at Khanh Hoi port on June 25, one day
earlier than expected. Of the figure, over 16,000 tons are projected to be
discharged to serve the demand in the South and over 7,000 tons are
projected to be shipped to the North.
Making sense of Vietnam market
10
On June 20, 2013, Transcenden time Vessel carrying 32,686 tons of
potassium chloride imported by Apromaco arrived at Nha Rong-Khanh
Hoi port (HCMC) to be discharged. Transcenden time Vessel will
discharge 17,580 tons of potassium chloride (piece and powder) at
HCMC ports to serve agricultural production in the Southeastern region
and Southwestern region; for the remaining volume, the vessel will
discharge it at Quy Nhon port to meet the demand from farmers in the
Central Region and Central Highlands. As planned, Apromaco will
monthly receive vessels carrying about 27,500-33,000 tons of potassium
chloride (red) sourced from Belarus to serve the domestic agricultural
production.
It is projected that prices of NPK, SA and potash will continue going down in the
coming time on quite ample supply. In the first week of July, additional two
vessels carrying about 31,000 tons of MOP bulk are projected to arrive at
Saigon port.
Meanwhile, in the Central Region, there was tight supply of potash in some
localities on strong demand for potash to take care of rice in in-ear stage.
However, this phenomenon will be unlikely to last long.
At Saigon ports, it is projected that about 43,500 tons of fertilizers (including
31,000 tons of MOP bulk, 9,500 tons of Chinese urea and 3,000 tons of Chinese
DAP) will arrive at Saigon ports from July 1 to July 11.
Data on vessels carrying fertilizers to arrive at Saigon ports in June and the
first days of July 2013
Origin/Departure Type Volume (Ton)
Projected
arrival
date to
Saigon
ports
June
Israel Mop bulk 29,995 6/2/2013
Philippines NPK bagged 6,600 6/2/2013
Philippines Dap bulk 2,850 6/1/2013
China Dap bagged 2,995 6/3/2013
Making sense of Vietnam market
11
China Dap bagged 3,000 6/5/2013
China Dap bagged 5,418 6/2/2013
Philippines NPK bagged 6,200 6/7/2013
Japan Sa bulk 8,000 6/12/2013
Lithuania GGR Mop bulk 30,000 19/6/2013
Qui Nhon NPK bagged 1,900 6/9/2013
NPK bagged 3,500 6/12/2013
Lithuania Mop bulk 5,000 29/6/2013
Israel Mop bulk 22,000 26/6/2013
Philippines NPK bagged 6,000 30/6/2013
Malaysia Urea bulk 4,620 22/6/2013
Indonesia Urea bulk 6,000 25/6/2013
Philippines SA bulk 3,299 24/6/2013
Malaysia Urea bulk 3,000 26/6/2013
Indonesia Urea bulk 6,000 27/6/2013
Philippines NPK bagged 6,000 30/6/2013
Korea Sa bulk 6,000 29/6/2013
Philippines Dap bulk 3,299 6/28/2013
Total volume in June: 171,676 tons
July
Lithuania Mop bulk 10,000 7/5/2013
China Urea bagged 3,500 7/11/2013
Israel Mop bulk 21,000 7/7/2013
China Urea bagged 6,000 7/5/2013
China Dap bagged 3,000 7/7/2013
Source: adapted by Agromonitor
At Tran Xuan Soan wholesale market, District 7, HCMC, after leveling off in
the previous week, prices of urea temporarily leveled off in the first days of this
week. However, on June 27 morning, prices of Phu My urea and Ca Mau urea
resumed the rising trend from early June. Prices of Phu My urea margined up by
VND 50/kg to VND 10,000-10,050/kg; prices of Ca Mau urea also gained by
VND 50-60/kg to VND 9,080-9,100/kg.
Prices of SA tend to go down as demand is not strong; supply is currently quite
ample while a large amount of SA is likely to come. Prices of SA on June 27
were temporarily unchanged from a day earlier. Prices of Korean SA alone were
Making sense of Vietnam market
12
VND 4,920-5,000/kg but some enterprises were preparing for offering Korean
SA at lower prices of VND 4,800-4,900/kg only.
Prices of other types such as DAP, potash and NPK remained quite stable.
Fertilizer prices at Tran Xuan Soan market, VND/kg
Type
27/6 26/6 25/6 24/6 Average
prices of this
week
Compared to
last week
Phu My urea 10.000-
10.050
9.950-
10.050
9.950-
10.050
9.950-
10.050
9.950-
10.050
-(50-70)
Ca Mau urea 9.080-
9.100
9.020-
9.050
9.020-
9.050
9.020-
9.050
9.050-9.080 +(20-30)
Chinese urea
(English-
Chinese label)
- - - - - -
Israeli potash 10.500-
10.600
10.500-
10.600
10.500-
10.600
10.500-
10.600
10.500-
10.600
-(100-150)
Canadian potash 10.700-
10.800
10.700-
10.800
10.700-
10.800
10.700-
10.800
10.700-
10.800 0
Hung He DAP 13.200-
13.500
13.200-
13.500
13.200-
13.500
13.200-
13.500
13.200-
13.500 0
Philippine DAP 14.300-
14.600
14.300-
14.600
14.300-
14.600
14.300-
14.600
14.300-
14.600 0
Phu My NPK
(16-16-8 + 13S) 11.500 11.500 11.500 11.500 11.500 0
NPK Yara 15-
15-15
15.000-
15.200
15.000-
15.200
15.000-
15.200
15.000-
15.200
15.000-
15.200 0
Vietnam-
Japanese NPK
16-16-8+13S
11.100-
11.300
11.100-
11.300
11.100-
11.300
11.100-
11.300
11.100-
11.300
0
Binh Dien NPK
16-16-8+13S
11.100-
11.300
11.100-
11.300
11.100-
11.300
11.100-
11.300
11.100-
11.300
-100
White Japanese
SA
5.250-
5.300
5.250-
5.300
5.250-
5.300
5.250-
5.300
5.250-5.300 -50
White Korean
SA DPM
5.300-
5.400
5.300-
5.400
5.300-
5.400
5.300-
5.400 5.300-5.400 0
Chinese SA 4.900-
5.000
4.900-
5.000
4.900-
5.000
4.900-
5.000 4.900-5.000 -(50-100)
Source: adapted by Agromonitor
Mekong River Delta
In the Mekong River Delta, fertilizer demand from summer-fall rice crop is
weaker while the demand from fall-winter rice crop is increasing. According to a
report from the Ministry of Agriculture and Rural Development, farmers in
Making sense of Vietnam market
13
Mekong River Delta are deploying a production plan for fall-winter rice crop and
tenth-month rice crop with the planned rice sowed area of 897,630 ha (including
700,000 ha of fall-winter rice). According to the schedule, in June, about
200,000 ha of rice is projected to be sowed; July: 400,000 ha and August:
200,000 ha.
Sowing pace of fall-winter rice crop (the third crop) this year soared. As of June
15, farmers in the whole Mekong River Delta sowed 157 thousand ha, up sharply
from over 40 thousand ha of the same period last year. Some provinces with fast
sowing pace included Dong Thap (89.2 thousand ha, up by 4 times year on year),
Can Tho city (28.5 thousand ha, up by 3 times), etc. However, in some remote
areas of Kien Giang, Hau Giang, Vinh Long, rice sowed area was lower
compared to the same period last year or farmers in some areas even have not
sowed rice because of unfavorable weather and water shortage.
Fertilizer demand was generally quite strong; prices of urea continued to go up
while prices of other types temporarily leveled off.
In some localities in Tien Giang, fertilizer demand was not strong because
farmers finished fertilizing summer-fall rice for the third phase and were mainly
using fertilizers to take care of secondary crops. Agents dare not to procure more
fertilizers or procured fertilizers with low quantity on low consumption. Prices of
Phu My urea sold by first-class agents to second-class ones continued to surge by
VND 5,000-10,000/bag to VND 520,000-525,000/bag. Prices of other types were
temporarily unchanged.
Fertilizer PROCUREMENT prices of second-class agents in Tien Giang
(including VAT, excluding freight rates), thousand VND/50-kg bag
Date Phu My
urea
Chinese
urea
(yellow
bag)
Philippine
DAP
Israeli potash
27/6 520-525 - 715-720 540-545
24/6 515 - 715-720 540-545
20/6 515 715-720 540-545
17/6 510 – 515 485 715-720 540-545
Making sense of Vietnam market
14
13/06 510 480 715-720 540-545
10/6 505 - 510 475 715-720 540-545
4/6 490 460 715-720 540-545
Source: adapted by Agromonitor
In Dong Thap, fertilizer demand remained quite strong to serve fall-winter rice.
As of June 25, the sowed area of 2013 fall-winter rice reached 108,258 ha out of
the planned 110,000 ha, reaching 98.4% of the plan; in which, seedling stage:
43,943 ha, panicle initiation stage: 59,527 ha, in-ear stage: 4,757 ha, and
flowering stage: 31 ha. Meanwhile, approximately 70% of the sowed summer-
fall rice area was harvested.
Prices of fertilizers sold by first-class agents to second-class agents over the
week were temporarily unchanged from a week earlier.
Fertilizer prices sold by first-class agents to second-class ones in Dong Thap
(at sellers’ warehouses, excluding freight rates, VND/kg
Phu My urea Ca Mau urea Chinese urea
(English/Chinese label)
Philippine DAP
26/6 9,800 9,400 9,600 14,360-14,400
20/6 9,800 9,400 9,600 14,360-14,400
Source: adapted by Agromonitor
Central Region-Central Highlands
In the Central Region, fertilizer demand tends to be weaker. Supply of Phu My
urea there is quite scarce; there have not been vessels carrying Phu My urea
arrived at ports in the region. Prices of Phu My urea in Quy Nhon are VND
10,030-10,050/kg; but in Da Nang and Quang Ngai, there is no Phu My urea to
sell. Supply of Chinese urea is also quite tight in the region. Meanwhile, vessels
carrying Indonesian urea constantly arrived at the ports. However, Indonesian
urea is mainly shipped to the Central Highlands with about 400-500 tons/day, but
the supply has not met the demand yet.
In addition, there was also tight supply of potash on strong demand for potash to
fertilize rice in in-ear stage over the week. Meanwhile, prices of DAP and SA
Making sense of Vietnam market
15
hardly changed on quite ample supply amid weak demand. To date, agents have
sold about 70-100 tons of fertilizers/day.
Prices of Phu My urea in Quy Nhon, Quang Ngai and Da Nang, VND/kg Market 27/6 25/6 21/6 17/6 12/6 11/6 6/6 4/6
Qui
Nhon
10,030-
10,050
- - - 10,020 10,020 10,000-
10,050
10,050-
10,100
Quang
Ngai
- 10,000-
10,050
10,000-
10,050
10,000-
10,050
10150 10,150 10,150-
10,200
10,150-
10,200
Da
Nang
- 9,900-
9,930
9,900-
9,930
9,900-
9,950
10100-
10150
10,120-
10,150
10,100-
10,150
10,150-
10,200
Prices of other types of fertilizers in Quy Nhon, VND/kg Type 27/6 25/6 21/6 17/6 12/6 11/6 6/6 4/6 31/5
Philippine
NPK
11,230 - - - 11,300 11,350 11,400 11,400 11,400
Phu My
NPK
11,250 11,250 11,250 11,250 11,250 11,250 11,250 11,250 11,250
Israeli
potash
- 10,600 10,600 10,600 10,600 10,600 10,600 10,600 10,600
Japanese
SA
(white)
- - - - 5,000-
5,100
5,000-
5,100
5,000-
5,100
5,000-
5,100
5,000-
5,100
Ha Bac
urea
- - - - - - 9,300 9,300 9,300
Ninh
Binh urea
9,600-
9,700
9,600-
9,700
9,600-
9,700
9,600-
9,700
9,600-
9,700
- - - -
Prices of some types of fertilizers in Da Nang, VND/kg Type 27/6 25/6 21/6 17/6 12/6 11/6 6/6 4/6
Chinese prilled
urea (English
label, yellow
bag)
- - - - - - - -
Philippine
NPK
- 11,600 11,600 11,600 11,600 11,600 11,600 11,600
Ninh Binh
urea
9,500-
9,600
9,500-
9,600
9,500-
9,600
9,500-
9,600
- 9,300 - -
Prices of some types of fertilizers in Quang Ngai, VND/kg Type\Date 27/6 25/6 21/6 17/6 13/6
Philippine NPK 11,500-
11,550
11,500-
11,550
11,500-
11,550
11,500-
11,550
11,500-
11,550
Ninh Binh urea 9,600 - - - 9,700-9,750
Ha Bac urea - - - - -
Ha Anh potash (Russia) - - - - -
Making sense of Vietnam market
16
Phu My NPK - 11,450 11,450 11,450 11,450
Japanese SA (white) - 5,300-5,400 5,300-5,400 5,300-5,400 5,300-5,400
Philippine DAP 16,000 16,000 16,000 16,000 16,000
Source: adapted by Agromonitor
Lam Dong
In Lam Dong, fertilizer demand plunged because farmers had almost finished
fertilizing industrial crops for the second season. To date, there has not been
supply of Chinese urea shipped to the province while Indonesian urea has been
complemented from the supply shipped from the Central Region. Prices of many
types of fertilizers were revised down. Procurement prices of Phu My urea
inched lower by VND 100/kg while procurement prices of Ca Mau urea lost by
as much as VND 350/kg; selling prices of Phu My urea declined by VND 200-
250/kg; and procurement prices of Phu My SA lost by VND 100/kg while the
selling prices inched lower by VND 50/kg.
Fertilizer PROCUREMENT prices of first-class agents in Lam Dong,
VND/kg
Type Phu My
urea Chinese
urea Ca Mau
urea Japanese
SA Israeli
potash Phu My
SA
26/6 9,900 - 9,050 5,200 10,400 5,100
19/6 10,000 - 9,400 5,200 - 5,200
11/6 9,700 - 9,060 5,300 10,500 5,200
05/06 9,600
9,000 5,650-
5,700 10,400
5,700-
5,750
28/5 9,650 - 9,000 5,650-
5,700 10,400
5,700-
5,750
21/5 9,700 - 9,400 5,650-
5,700 10,400
5,700-
5,750
15/5 9,900 9,400 - 5,650-
5,700 10,400
5,700-
5,750
08/05 - 9,800 - 5,650-
5,700 10,400
5,700-
5,750
Fertilizer SELLING PRICES of first-class agents in Lam Dong, VND/kg
Date Phu My urea Japanese SA Israeli potash Phu My SA
26/6 10,250-10,300 5,800 11,000 5,650-5,700
19/6 10,500 5,800 11,000 5,700
11/6 10,100 5,800 11,000 5,700
Making sense of Vietnam market
17
05/06 10,050 5,800-6,000 11,000 6,100
28/5 10,050-10,100 5,800-6,000 11,000 6,100 21/5 10,100 5,800-6,000 11,000 6,100
15/5 10,250-10,300 5,800-6,000 11,000 6,100
08/05 10,300 5,800-6,000 11,000 6,100
Source: adapted by Agromonitor
Border gate (through border gates between China and Vietnam)
In the import period from May 29 to June 11, fertilizer imports from China
through Dong Dang International Trans-Viet Railway Border gate were about
6.8 thousand tons, worth US$ 2.76 million. Specifically, imports of Ammonium
Nitrate through the border gate were the highest at 5.3 thousand tons; there was
no urea cargo shipped through the border gate but SA imports were over 1,000
tons.
Fertilizer imports of Vietnam through Ta Lung border gate (Cao Bang) were
quite low at about 1.69 thousand tons only, worth US$ 576.8 million and the
only type of fertilizer imported was urea.
Imports of fertilizers through Dong Dang International Trans-Viet Railway
Border gate and Ta Lung border gate (Cao Bang), May 29-June 11, 2013
Dong Dang International Trans-
Viet Railway Border gate
Ta Lung border gate (Cao Bang)
Type Volume (Ton) Value (US$) Volume (Ton) Value (US$)
Ammonium Nitrate 5,300 2,406,160
Urea
1,695 576,868
SA 1,270 215,635
Other 240 142,800
Total 6,810 2,764,595 1,695 576,868
Source: Agromonitor, adapted from General Department of Vietnam Customs
At Bat Xat border gate, prices of Chinese urea over the week reversed to fall to
about VND 8,700-8,800/kg.
Making sense of Vietnam market
18
Urea import prices through Bat Xat border gate
Date Prices (including VAT, excluding freight rate)
27/6 8,700-8,800
17/6 8,850-8,900
13/6 8,700-8,800
6/6 8,000
30/5 7,900
Source: adapted by Agromonitor
TRADE
According to the latest estimate from the Ministry of Agriculture and Rural
Development, fertilizer imports of Vietnam in June 2013 were projected at 297
thousand tons, worth US$ 99 million, down by 31.46% in volume and 44.15% in
value from the previous month. Of the figure, DAP was most imported with 75
thousand tons, followed by SA with 67 thousand tons. Urea import volume was
quite low at about 32 thousand tons only.
Meanwhile, as per the preliminary data from the General Statistics Office,
fertilizer imports of Vietnam in June 2013 were estimated to be much higher at
350 thousand tons, worth US$ 136 million, down by 19.23% in volume and 23%
in value from the previous month. Cumulative fertilizer imports of Vietnam for
the first half of 2013 were about 1.86 million tons, worth US$ 754.57 million, up
by 27% in volume and 16% in value year on year.
Making sense of Vietnam market
19
Fertilizer imports by month, January 2012-June 2013 (Thousand tons,
million US$)
Source: Agromonitor, adapted from General Department of Vietnam Customs
Jun.*/2013: Estimate from the Ministry of Agriculture and Rural Development
Jun.**/2013: Estimate from the General Statistics Office
In the import period from May 28 to June 11, there were about over 130 fertilizer
importing enterprises with a total value of US$ 83.04 million. Of the figure, top
10 enterprises in import value accounted for 62% with US$ 51.46 million.
Vinacam JSC., ranked first in import value with US$ 14.82 million, followed by
Viet Hoa Nong Co., Ltd and TGO Commodities Hai Phong Co., Ltd with values
of US$ 10.18 million and US$ 6.68 million.
Top 10 fertilizer importing enterprises in import value, May 28-June 11,
2013
Enterprise
Value
(US$)
Vinacam JSC.,
14,821,325
Viet Hoa Nong Co., Ltd
10,184,847
TGO Commodities Hai Phong Co., Ltd
0
20
40
60
80
100
120
140
160
180
200
0
50
100
150
200
250
300
350
400
450
500
Jan
Feb
Mar
Ap
r
May
Jun
Jul
Au
g
Sep
Oct
Nov
Dec Jan
Feb
Mar
Ap
r
May
Jun
*
Jun
**
2012 2013
Thousand tons Million US$Volume (Thousand tons) Value (Million US$)
Making sense of Vietnam market
20
6,677,165
Baconco Co., Ltd
5,120,560
Long Hai Investment Group JSC
2,847,342
Branch of PetroVietnam Fertilizer and Chemicals Corporation – Joint Stock
Company
2,742,302
Nguyen Phan Co., Ltd
2,599,052
Japan Vietnam Fertilizer Co.
2,524,500
Huynh Thanh Manufacturing Service And Trading Co., Ltd
2,227,797
Thien Thanh Loc Manufacture Trading Co. Ltd
1,715,979
Source: Agromonitor, adapted from General Department of Vietnam Customs
Making sense of Vietnam market
21
Appendix 1: Fertilizer imports by type in the import period from May 29 to
June 11, 2013 compared to the previous import period
May 29 – June 11 May 14 – 28
Type Volume, ton Value, US$ Volume, ton Value, US$
DAP 55,308 28,653,951 45,262 24,240,097
Potash 41,988 18,956,841 21,198 9,392,437
SA 35,317 6,750,021 61,857 12,487,801
NPK 15,345 7,242,749 30,636 14,614,434
Urea 7,774 2,875,989 15,066 5,681,172
Ammonium Nitrate 6,350 2,907,160 5,400 2,483,644
Other 3,827 1,427,087 4,537 2,395,733
MAP 2,428 1,038,495 2,091 927,574
Ammonium chloride 1,055 171,966 1,260 263,008
Leaf fertilizer 349 1,473,834 88 244,981
MKP 73 93,460 122 163,845
Total 169,814 71,591,552 187,517 72,894,727
Appendix 2: Fertilizer imports through ports and border gates in the import
period from May 29 to June 11, 2013
Port, border gate Volume, ton Value, US$
Tan Thuan port (HCMC) 36,295 14,821,325
Lao Cai border gate (Lao Cai) 31,389 12,952,647
Cat Lai port (HCMC) 27,372 9,952,357
Bat Sat border gate (Lao Cai) 10,058 4,186,977
Phu My port (Vung Tau) 9,398 4,919,988
Quy Nhon port (Binh Dinh) 8,412 3,154,017
Tan Cang port (HCMC) 7,440 3,152,716
Dong Dang International Railway border gate 6,810 2,764,595
Ben Nghe port (HCMC) 5,400 2,894,400
Bonded warehouse of Baria Serece Joint Venture 5,000 2,275,000
Tan Cang – Cai Mep port (Vung Tau) 3,522 1,632,793
Khanh Hoi port (HCMC) 3,349 2,022,306
Cha Lo border gate (Quang Binh) 3,170 1,280,100
Vict port 2,328 1,745,036
Mong Cai border gate (Quang Ninh) 2,050 810,038
Ta Lung border gate (Cao Bang) 1,695 576,868
Lao Cai railway border gate 1,682 857,565
Bonded warehouse at Phu My port 1,000 455,000
Source: AgroMonitor, adapted from General Department of Vietnam Customs
Making sense of Vietnam market
22
Appendix 3: Prices of Chinese urea (English-Chinese label), Phu My urea
and Ca Mau urea at Tran Xuan Soan market by week, VND/kg
Week
Chinese urea
(English-
Chinese label)
Ca Mau urea
(market price) Phu My urea
Week 08/04-12/04/13 9,250 9,475 9,713
Week 15/04-18/04/13 - 9,475 9,881,25
Week 22/04-25/04/13 - 9,475 9,945
Week 29/4-2/5/13 - 9,475 10,083
Week 6/5-9/5/13 9,462 9,935
Week 13/5 – 16/5/13 8,900 – 8,920 9,462 9,900
Week 20/5 – 24/5/13 8,800 – 8,920 9,030-9,050 9,700
Week 27/5 – 30/5/13 8,800-8,820 9,030-9,050 9,560-9,650
Week 3/6 – 6/6/13 8,800-8,820 9,030-9,050 9,600-9,650
Week 10/6 - 13/06/13 - 9,100 10,020 – 10,050
Week 17/6 – 20/6/13 - 9,020-9,050 10,050-10,100
Week 24/6 – 27/6/13 - 9,050-9,080 9,950-10,050
Source: Adapted from the market
Appendix 4: 29 units participating in STC’s June 22 tender
BIDDER ORIGIN QTY/MT
Firm S/O
from to from to
1 Agri Commodities Open 65 65 125 125
2 Amber Open 300 305 0 0
3 Aries Open 70 80 70 80
4 Ameropa Open 140 140 140 140
5 Berrychem Open 60 60 60 60
6 Blue Deebaj Open 150 150 100 100
7 Continental Traders Open 210 210 100 100
8 Dreymoor Fertilizers Open 360 420 180 210
9 Emmsons Open 370 400 0 0
Making sense of Vietnam market
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10 Fertisul Open 70 70 70 70
11 Indagro Open 100 100 50 50
12 Jiuhe Co. Ltd. Open 60 60 0 0
13 Keytrade Open 60 70 60 70
14 Kisan Intl. Open 100 100 100 100
15 Liven Agrichem Open 180 180 0 0
16 Overseas Trading & Shipping Open 200 200 0 0
17 Quantum Fertilizers Open 150 200 0 0
18 Rare Earth Commodities Open 150 150 0 0
19 Shandong Open 50 50 0 0
20 Sinochem Open 70 70 70 70
21 Swiss Singapore Open 190 190 0 0
22 Transglobe Open 270 270 0 0
23 Trammo Open 200 200 70 100
24 Toepfer Open 100 100 0 0
25 Valency International Open 50 50 0 0
26 Wilson International Open 70 70 0 0
27 YUC Open 150 150 150 150
Total 3945 4110 1345 1425
S/O=Seller's Option
