Compound fertilizer suppliers should be ready for the price weakness

Due to weak raw material prices, traders are still delaying purchases, and the price of compound fertilizers are expected to continue to weaken.

 

Buyers in Europe, FSU and even China have a delay in buying fertilizer for the spring, and they all hope to get low-priced goods at the last minute.

 

Although Russia's offer to Europe is basically flat this week, suppliers are facing downward pressure on price cuts due to lack of enquiries. The FOB price of NPK15-15-15 in Russia is usually 280 US dollars / ton, but buyers hope that the transaction will be close to the FOB price 265-270 US dollars / ton.

 

Russian producers expect Asian buyers to move their shipments to Malaysia and Indonesia in January, while ACron offers IPL and MCFL in India.

 

After more than two months of delay, Ethiopia's EABC finalized a bid for 625,000 tons of NPS, NPSB and NPSZnB. OCP is still the only successful bidder to deliver 10 shipments, with 3 batches delivered in January and 3 batches delivered in February.

 

Market driven

 

1. The urea market continues to be weak

 

India's MMTC urea tender offer was lower than expected, coupled with strong spot supply of urea at the end of January and February, indicating that urea prices continued to weaken.

 

2, the buyer is still hesitating

 

Suppliers are likely to have to cut prices further to attract buyers who are not eager to buy products for the spring market.

 

30 - 60 days outlook

 

Facing weaker raw material prices and downstream dealers who lack interest in buying, suppliers are beginning to feel the pressure to further cut prices.