The domestic urea fertiliser market is facing slowed sales and a decrease in demand on the heels of rapid price increases in recent months. Sales of urea at Tran Xuan Soan market, a popular place to purchase the fertiliser, have been slow in past weeks due to a decline in demand in Cuu Long (Mekong) Delta provinces, according to one trader.
Dinh Huu Loc, director of the Nitrogenous Fertiliser and Petrol Chemical Products Company, said consumption of urea fertiliser was down in May. The company sold 30,000 tonnes last month, less than the company’s target of 70,000 tonnes.
Meanwhile, wholesale prices at Tran Xuan Soan market have remained stable at 4.894.92 million dong (US$310-312) per tonne for imported urea fertiliser and 4.72 million dong per tonne for Phu My urea, said the trader.
Prices in central Phu Yen and Quang Binh provinces have stabilised since mid-May at 4.9-4.93 million dong per tonne for imported urea fertiliser and 4.8-4.85 million dong per tonne for Phu My urea, according to the Central Food and Foodstuff Company, an urea supplier for the two provinces.
The Central Food and Foodstuff Co added that despite talk of price increases in the world market, real prices in the domestic market did not increase.
Loc said that when the global market price for urea increased, domestic fertiliser traders would have rushed to buy lower-cost urea from the Phu My plant.
It is certain that domestic prices will be affected by increased global prices, as Vietnam imports 60-70% of urea fertilisers.
Early in May, prices for Phu My urea increased to 4.67 million dong (US$296) while import prices were up to US$315-320 (5.34-5.4 million dong) per tonne for China’s fertiliser, and US$330 per tonne for Russian fertiliser.