Fertilizer prices surge after China imposes export ban
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Urea prices have risen by 10% in September and 30% since July after China banned the export of the fertilizer to keep domestic prices under control.
Petrovietnam Camau Fertilizer raised urea prices by 10% this month to VND11,200 per kilogram.
Petrovietnam Fertilizer and Chemicals Corp hiked prices by 4.8% to VND11,000.
Other chemical producers also effected similar hikes. Some such as HCMC-based Viet Au have raised prices to VND12,500.
Urea provides plants with nitrogen to stimulate leaf growth.
Phung Ha, deputy chairman of the Vietnam Fertilizer Association, said China, the biggest producer and consumer of urea globally, ordered some manufacturers earlier this month to stop exports and this caused prices of the key fertilizer to surge globally including in Vietnam.
Vietnamese farmers are buying fertilizers for their winter-spring crops, and the rising demand is exacerbating the rise in prices.
In the first eight months of the year, Vietnam imported nearly 2.5 million tons of fertilizers worth US$833 million, up 13% in volume but down 19% in value year-on-year.
Nearly half of the imports came from China.
Questions & Answers
Q.Which specific type of fertilizer has seen price increases recently?
Which specific type of fertilizer has seen price increases recently?
Urea prices have risen by 10% in September and 30% since July. This type of fertilizer provides plants with nitrogen to stimulate leaf growth, making it a key agricultural input.
Q.What is the primary reason for the recent surge in fertilizer prices?
What is the primary reason for the recent surge in fertilizer prices?
China, the world's largest producer and consumer of urea, imposed an export ban to control domestic prices. This action by China has caused global prices, including those in Vietnam, to surge.
Q.How have Vietnamese fertilizer companies reacted to the market changes?
How have Vietnamese fertilizer companies reacted to the market changes?
Petrovietnam Camau Fertilizer and Petrovietnam Fertilizer and Chemicals Corp have raised urea prices by 10% and 4.8% respectively. Other chemical producers, such as Viet Au, have also implemented similar price hikes.
Q.What proportion of Vietnam's fertilizer imports typically originates from China?
What proportion of Vietnam's fertilizer imports typically originates from China?
In the first eight months of the year, nearly half of Vietnam's total fertilizer imports, which amounted to almost 2.5 million tons, came from China. This highlights China's significance as a supplier.
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