With excessive supply and far less consumption, fertilizer prices fell drastically in October, said the Vietnam Fertilizer Association.
The Ca Mau Fertilizer Plant, Phu My Fertilizer Plant and Ha Bac Fertilizer Plant are all operating at full capacity and producing an estimated amount of 550,000 tons for the market in year-end months.
In addition, fertilizers in stock across the country are around 140,00 tons and imported fertilizer is around 150,000 tons, adding to a total of 850,000 tons.
Accordingly, in the fourth quarter of the year, the supply will exceed demand by around 300,000 tons. Fertilizer for the coming winter-spring crop is ensured; hence the association has warned importers to consider before placing more orders.
A surplus supply of fertilizer resulted in decreased prices since October. In the Mekong Delta, the price of fertilizer slumped drastically as compared to July. For instance, Phu My fertilizer reduced by VND90,000 on a 50 kilogram bag and it is forecast that prices will decrease more as consumption lessens.
Diammonium phosphate (DAP) fertilizer and NPK fertilizer reduced by VND30,000 per 50 kilogram bag in the Mekong Delta. A bag of DAP made in the Philippines fetches VND815,000 per 50 kilogram bag while Chinese-made DAP costs VND700,000 per 50 kilogram bag.
Vietnamese farmers are no longer worried about hike in fertilizer prices because of surplus supply.
