Vietnamese fertilizer traders dare not sign further contracts to import urea due to high domestic inventories and global price hikes against lower prices in Vietnam, said a director of a state-run company.
Dinh Huu Loc, the director of Phu My Urea Fertilizer Factory, also added that world urea prices have increased by US$25-30 up to US$314 per ton while domestic Phu My urea rates are at US$215-282 per ton.
Last year Vietnam Fertilizer Association advised domestic enterprises not to import more urea fertilizer thanks to sufficient domestic supply.
But importers continued to hoard fertilizer and now face financial losses caused by large stocks bought at higher rates than domestic sources.
Though importers are warning of the possibility of an urea shortfall this year, Phu My Factory has ensured that there would be a sufficient supply for farmers in the coming crops.
“Fertilizer market would be stabilized with domestic supplies leveling off,” Loc assured at a meeting held by the Vietnam Fertilizer Association on February 28 to seek measures for stabilization of local urea market in the upcoming summer-autumn period.
At the meeting, Loc said more than 600,000 tons provided by the plant and an amount of between 100,000 and 180,00 tons of import urea should satisfy domestic market demand.
In addition, the plant has a stock of over 100,000 tons in case of unexpected price hikes in the world market.
Vietnam is estimated have spent US$38 million importing 157,000 tons of urea fertilizers in the first two months of this year, up 143.8 per cent in value and 140.8 per cent in volume, according to the Government Statistics Office.
The statistics also showed that the country imported 75,000 tons of urea last month, costing US$18 million, up 29.5 per cent in volume and 20 per cent in value compared to February last year.
Youth
Vietnamese
