Fertilizer prices today March 8, 2022: Potassium prices continue to increase sharply

fertilizer prices today March 8, 2022: Potassium offers continue to increase sharply due to concerns about tightening world potash supply from Western sanctions on Russia and Belarus and logistical problems. Under the strong influence of the war between Russia and Ukraine along with strict sanctions, DAP prices will soon increase due to the loss of important supplies from Russia. On the other hand, OCP, Morocco, the world’s largest distributor of important raw materials such as ammonia for DAP production, has been unable to access this source from Russia, causing other producers outside of Russia to reduce production by up to 1 million tons of DAP/month from March 2022. With the above data, it is forecasted that DAP prices will return to $950 FOB in April and may soon reach $1,200 or even $1,500/ton when the Brazilian market has demand again. Belarus and Russia are the two largest suppliers of Potash in the world, with a market share of up to 40% of global supply. With the current panorama, Potash prices will skyrocket in the near future, especially Potash flakes. Suppliers all confirm that imported Potash to Vietnam in the near future will be absent from Russia and Belarus, and seizing the opportunity, Israel, Canada, etc. have warned that they will soon set a price of 800-850 USD/ton for powder granules and 1,000 USD/ton for granules from the second half of June 2022, and will even reach 1,200-1,300 USD/ton by the end of 2022 and early 2023. Regarding domestic DAP producers, we do not see much improvement in supply, disputes over raw material sources have not been resolved satisfactorily. Therefore, with the import market congestion, it is forecasted that there will be a severe shortage of imported DAP 64% in the second quarter and the possibility of domestic prices rising to 25,000,000 VND/ton is irreversible. If the price of Urea is still an unknown because after all, domestic production has exceeded demand – just a move to limit exports to support domestic farmers will immediately cause the price of Urea to decline rapidly. However, it is different with Potassium, because 100% depends on imported goods. Obviously, the situation of congestion of goods from Russia and Belarus is heating up the price of Potassium globally. In Vietnam, the price of Potassium will soon reach 15-16,000,000 VND/ton for powder and 18-20,000,000 VND/ton for flakes. Even if the import price reaches 1,000 – 1,2000 USD/ton, Potassium flakes will set a new peak of 24,000,000 – 25,000,000 VND/ton. If the price of Potassium, DAP, and Urea increases, the price of NPK will follow. The question now is how much will fertilizer increase? It is difficult to have an exact answer, but perhaps we have to wait until the peace agreement between Russia and Ukraine is signed and the West lifts sanctions. In the country, if the State management agencies take action to remove import tax and defense tax, and restrict exports, the situation of Urea and DAP will certainly cool down. #fertilizer_price #farmers #western_region #fertilizer_price #fertilizer #fertilizer #fertilizer #potassium_price #agriculture #fertilizer #agricultural materials

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