Vietnam, Qatar's Firms Ink Fertilizer Deal
PetroVietnam Fertilizer and Chemical JSC (PVFCC, DPM) May 13 signed an agreement with Qatar Fertilizer Company (QAFCO) to import a huge amount of urea fertilizer within three years in order to calm down local shortage, the Tien Phong (Pioneer) newspaper reported.
An official of PVFCC said from Qatar that the agreement will be a legal base for the economic cooperation between DPM and QAFCO, one of the world’s leading fertilizer producers in the world, in the future.
This is a very important deal to DPM in the context that local demand for fertilizer is growing and fertilizer prices are forecast to continue soaring, the newspaper said.
Currently, fertilizer supplies from China are stagnant as China raised export tax of fertilizer from 35 per cent to 135 per cent
Leaders of DPM had also signed a Memorandum of Understanding with the Morocco’s Office Cherifien des Phostphates Group (OCP) to build a DAP fertilizer plant in the African country with total investment of US$600 million.
Vietnam is estimated to need around 950,000 tons of fertilizer from now to the year’s end. Some 660,000 of which will be locally supplied while the remainder of 290,000 will be imports.
DPM is expected to import a total of 250,000 tons of fertilizer this year in order to ensure sufficiency for local market. The company has so far this year signed contracts to import 150,000 tons of fertilizer.
As of late April, the company produced 210,233 tons of fertilizer. (Tienphongonline)
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