Vinacam Director-general: 'Urea fertilizer price increased abnormally and chaotically'

According to some traders in the fertilizer industry, at the beginning of March, the average price of China green DAP 64% was VND 15.5 million per ton, that of Korea DAP was VND 15.5 million per ton and DAP Dinh VU was VND 11.2 million per ton among others.

From mid-March, prices of China green DAP and DAP Korea decreased to VND 14.8 million per ton while that of DAP Dinh Vu declined to VND 10.6 million per ton.

However, since the last middle of April, the DAP fertilizer price has resurrected and keeps rising continuously from VND 12.6 million to 16.8 million per ton. 

Some traders blamed the cause of the increase in DAP price for the shortage of supply while the demand is abundant.

Not only DAP fertilizer, but the prices of many other fertilizers are also increasing sharply. Of which, the most worrisome is the continuous increase in the price of Urea, although it is supervised and managed by the state. Sometimes, the domestic production of urea is so abundant that it must promote export, which means, domestically produced Urea fertilizer can meet the market’s demand.

General Director of Vinacam Vu Duy Hai, said that since April, although importers rushed to import nearly 200,000 tons of urea to Vietnam (both clear seeds and nuts) the escalation of domestic price still shows no sign of stopping.

Especially, according to Hai, from the beginning of June, the variation of urea fertilizer price is no longer daily bit hourly. 

Hai said that the price of urea in the country has recently increased very abnormally, chaotically, and showing signs of losing control. The proof is that in the first half of June, Ninh Binh Fertilizer One Member Company Limited had announced changes in Urea price three times. Specifically, on June 4, the company once again announced that the selling price in the North (from Quang Binh onwards) is VND 9.1 million per ton for commercial goods and VND9.05 million per ton for industrial products.

On June 11, Ninh Binh Fertilizer announced that the price of Urea sold in the North region was VND 9.35 million per ton for commercial products and VND 9.3 million per ton for industrial products, an increase of VND 250,000 per ton compared to the previous announcement. On June 15, Ninh Binh Fertilizer announced to adjust the price of Urea for commercial products to VND 9.5 million per ton and VND 9.45 million per ton for industrial products, increasing by VND 150,000 per ton.

Many traders said that urea price is continuing its rapid increase not only because of the increase of world market as the supply is limited but also domestic supply is currently thin, which is unable to meet the demand.