June 26, 2012

Vietnam's fertiliser shortage affects prices

Vietnam's domestic fertiliser market is heating up due to a shortage in supply sources despite the global decreasing prices, according to industry insiders.

Accordingly, a 50-kilogramme bag of urea fertiliser in southern provinces currently stands at VND570,000-575,000 (US$27.14-27.38), up roughly VND70,000-80,000 (US$3.37-3.85) against early this year. In several northern and central provinces, the price is even higher, reaching VND590,000-600,000 (US$28-29) per bag. The rise is estimated to increase by nearly 40% compared with the same period last year.

This is in direct contrast to a price decline in the global market where a tonne of fertiliser is at US$460-465, down US$40-100 against May. With the import price, in addition to transport and other costs, it is estimated that a 50 kilogramme-bag of fertiliser should be sold at roughly VND500,000 (US$24).

Cao Hoai Duong, General Director of the PetroVietnam Chemicals Co, attributed the local price skyrocketing to the shortage of fertiliser supply in the domestic market due to an inaccurate forecast.