Ghana bids for compound fertilizer, increasing demand in Africa

New demand is emerging in Africa as Ghana begins bidding for supply through 2021. The General Administration of Food and Agriculture (MOFA) of Ghana is seeking to purchase 346,500 tons of NPKs and 168,000 tons of urea, more than 90,000 tons than last year’s tender. The pre-qualification process will be ended on September 3.

In Zambia, five companies were awarded the 150,000 tons of 10-20-10+6S and 150,000 tons of urea in government bids. Traders estimate that the country's total demand may be close to 300,000 tons, and trading companies have been building inventories.

Purchases from India are still continuing. Kribhco ordered 30,000 tons of 10-26-26 and 30,000 tons of 20-20-0+13S from Phosagro at a price of US$325/ton CFR and US$260/ton CFR. Shipment in September. However, RCF received little interest during the pre-qualification phase of the forward purchase bidding that ended on August 17.

In stagnant regions, rising raw material prices pushed quotations beyond the scope of buyers, but buyers in India, Africa, and Brazil who obtain products will support the prices of certain grades of products.