Fertilizer Prices Forecast to Rise 17% in Vietnam: AgroMonitor

The Vietnam Market Research and Analyst JSC (AgroMonitor) has forecast that prices of fertilizers will slightly rise between 15% and 17% on year in the Vietnamese market this year.

 

The company said in an annual report on the fertilizer market in 2009 and forecast in 2010 that local farmers use less fertilizer to cut production costs and as a number of fertilizer plants will start operations soon are the major reasons.

 

AgroMonitor also noted that Petrovietnam Fertilizer and Chemicals Corporation (PVFCCo), DPM, will raise its capacity from 740,000 tons/year to 800,000 tons late 2010.

 

Fertilizer prices are forecast not to surge on high supply but weak demand despite the price hikes of petrol. AgroMonitor cited the World Bank as saying that prices of DAP, Kali, and urea fertilizers will drop around 7.15%; 36.5% and 10% from 2009 to $300/ton; $400/ton and $225/ton, respectively on the world market this year.

 

The company said the fertilizer prices on the world market will drive the prices in Vietnam because imported fertilizers account for 50% of the domestic demand.

 

The Ministry of Industry and Trade has requested local fertilizer companies not to raise prices until the year’s end after the Ministry of Finance publicized a report showing that the companies have so far this year increased the prices by 2%-6.3% and made high profits.

 

Vietnam is forecast to need 9.1 million tons of fertilizers this year, including two million tons of urea; 700,000 tons of SA; 750,000 tons of DAP; 3.3 million tons of NPK; 1.6 million tons of phosphate and 850,000 tons of kali.

 

Domestic supply is able to meet 60% of demand, including 100% of NPK and phosphate; 45% of urea and 30% of DAP. (STD)