May 10, 2012
Vietnam's fertiliser prices down in summer-fall due to oversupply
Due to oversupply and a huge stockpile, Mekong Delta's fertiliser prices for the summer-fall rice crop will likely to be dragged down.
PetroVietnam Fertiliser and Chemicals Corporation (PVFCCo) said it will provide 390,000 tonnes of urea fertiliser, including 230,000 tonnes for the Mekong Delta during the summer-fall season.
Phu My urea plant of PVFCCo is working at its full capacity so it is set to produce 200,000 tonnes of urea in the second quarter. Apart from a stockpile of 60,000 tonnes, PVFCCo plans to import 30,000 tonnes of urea to satisfy domestic demand.
Ca Mau urea plant, under the Vietnam National Oil and Gas Group, will supply 150,000 tonnes of urea in the second quarter.
Ninh Binh urea plant, a unit of the Vietnam National Chemical Group (Vinachem), will enter the market with annual output of 560,000 tonnes.
Given low consumption demand, as of now, fertiliser plants of Vinachem reported a huge stockpile of 700,000 tonnes.
To overcome the current situation, key producers such as Binh Dien Fertiliser Co, the Southern Fertiliser Co., Can Tho Fertiliser & Chemical Co. and Van Dien Fused Magnesium Phosphate Fertiliser Co. are finding ways to export their stocks to Cambodia, Thailand and Myanmar.