ANN/VIETNAM NEWS – Vietnam’s fertiliser market is showing positive signs after the Lunar New Year holiday, driven by rising global prices, according to AgroMonitor.
Urea fertiliser exports are projected to reach around 70,000 tonnes in February, with local manufacturers prioritising pre-holiday export orders.
A survey by AgroMonitor, covering the four largest fertiliser enterprises in the country, indicated that the PetroVietnam Ca Mau Fertiliser JSC (PVCFC) has secured additional contracts to have the shipment of around 70,000 tonnes of urea fertiliser in February and March.
PVCFC has also prepared 30,000–33,000 tonnes for delivery to Australia and has scheduled some shipments to Cambodia for February.
Meanwhile, the PetroVietnam Fertiliser and Chemicals Corporation (PVFCCo) continues its export activity in February, offering urea at free on board (FOB) prices ranging from USD460-465 per tonne.
Two fertiliser companies under the Vietnam National Chemical Group (Vinachem), Ninh Binh Nitrogen Co Ltd and Ha Bac Nitrogen Fertiliser and Chemical JSC, are also maintaining their export operations.
The International Fertiliser Association (IFA) projects a six-per-cent annual increase in global urea demand between 2024 and 2028. The global fertiliser exports are anticipated to recover, particularly in traditional markets such as Cambodia and South Korea. Vietnam is expanding its market to Europe, where higher product quality standards prevail.
AgroMonitor also forecasts that the global urea fertiliser market will continue its upward trajectory, with active trading in major markets, Vietnam News Agency reported. Demand is increasing across the Americas, Europe, and Africa, while a limited supply of spot urea fertiliser is further propelling price growth.
At present, the global urea fertiliser prices are on the rise, fuelled by a sharp increase in Indian bids, ranging from USD422-427 per tonne. India may issue an import tender in February to meet domestic demand, further pushing prices upward.
However, fertiliser supply remains constrained in Asia. Malaysia’s Petronas has halted spot deliveries, and other producers in Malaysia and Brunei are primarily offering large shipments starting in March. Iran also faces supply limitations, with most producers halting production, except for Pardis Company, which continues operations with an annual capacity of 1.07 million tonnes, mainly for the domestic market.
The global fertiliser market is also anticipating potential price increases in Europe, where the European Union has proposed tariffs on nitrogen-based fertilisers from Russia and Belarus. These tariffs could raise urea prices in Europe, a market that imports approximately 1.6 million tonnes annually.
In January 2025, the average global urea fertiliser price rose by ranging from six-15 per cent compared to December 2024.
As a result, domestic urea fertiliser prices in Vietnam have surged since the second half of January, continuing their upward trend into February. The increase follows the global price trend.
Currently, Ca Mau urea fertiliser is priced at VND11.2 million per tonne in Ho Chi Minh City and Long An Province, VND11.9-12 million at the Southwest transit warehouse, and VND12.1-12.3 million in the Southwest region.
Phu My urea is priced at VND11.4 million in Ho Chi Minh City and Long An, VND10.5-10.85 million at the Southeast transit warehouse, and VND11.6 million in the Southern region.
Ninh Bình urea is sold at VND11 million per tonne at the factory, and VND11.3 million in Ho Chi Minh City and Long An.
Ha Bac urea fertiliser prices saw two price hikes in January, bringing the cost to around VND10.9-11 million per tonne.
According to Argus Company, demand for imported urea fertiliser is expected to remain strong in February, particularly from Australia, Southeast Asia, Europe, Mexico and Central America.
The robust demand is expected to push up prices for urea fertiliser from suppliers in Iran and Egypt.
