Indian compound fertilizer import demand remains strong

According to reports, discussions on China’s sale of NPS goods to India took place this week. Chambal purchased 20,000 tons of 20-20-0+13 at CFR253/ton and shipped it to Panjin on July 31. The sale is the first time Chambal has imported 20-20-0+13 since at least April 2015. It is also the beginning of Argus India’s import data. This is the first batch of Chinese goods imported since November 2019. RCF plans to purchase 30,000 tons of products of this grade and deliver them in late August. Before the beginning of the 2020-21 fertilizer year, RCF has not imported 20-20-0+13 for at least 5 years, but since April, it has purchased 70,000 tons of products of this level. However, the import demand for 10-26-26 was not met because the NFL did not receive any quotation in the bidding for the purchase of 30,000 tons as of July 7.

One of the main drivers of India's import growth is the domestic production cuts due to the pandemic. Although the restrictions that initially caused a series of factory shutdowns at the end of March were lifted, the restrictions on output still exist. On July 7, fruit country producer Zuari closed the NPK plant with an annual output of 400,000 tons due to a labor shortage, which was directly attributed to the epidemic.

30-60 days outlook

The increase in demand in Eastern Europe will offset the purchasing power of Indian buyers and the negative sentiment in China.