Packaging fertiliser for export at PVCFC. The company has secured additional contracts to ship around 70,000 tonnes of urea fertiliser in February and March. —VNA/VNS Photo

HÀ NỘI — Việt Nam's fertiliser market is experiencing a positive performance following the Tết (Lunar New Year) holiday in light of rising global prices, according to market research firm AgroMonitor.

In February, urea fertiliser exports are expected to reach approximately 70,000 tonnes. Local fertiliser manufacturers are focusing on fulfilling export contracts that were signed prior to the Tết holidays.

A survey by AgroMonitor, covering the four largest fertiliser enterprises in the country, indicated that the PetroVietnam Cà 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 FOB prices ranging from US$460-465 per tonne.

Two fertiliser companies under the Việt Nam National Chemical Group (Vinachem), Ninh Bình Nitrogen Co Ltd and Hà Bắc Nitrogen Fertiliser and Chemical JSC, are also maintaining their export operations. Notably, 6,600 tonnes of Ninh Bình urea fertiliser are slated for export to Taiwan (China), free on board (FOB) priced at $394 per tonne.

The International Fertiliser Association (IFA) projects a 6 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. Additionally, Việt Nam 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 $422-427 per tonne. Additionally, 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 6-15 per cent compared to December 2024. As a result, domestic urea fertiliser prices in Việt Nam have surged since the second half of January, continuing their upward trend into February. This increase follows the global price trend.

Currently, Cà Mau urea fertiliser is priced at VNĐ11.2 million per tonne in HCM City and Long An Province, VNĐ11.9-12 million at the Southwest transit warehouse, and VNĐ12.1-12.3 million in the Southwest region.

Phú Mỹ urea is priced at VNĐ11.4 million in HCM City and Long An, VNĐ10.5-10.85 million at the Southeast transit warehouse, and VNĐ11.6 million in the Southern region.

Ninh Bình urea is sold at VNĐ11 million per tonne at the factory, and VNĐ11.3 million in HCM City and Long An.

Hà Bắc urea fertiliser prices saw two price hikes in January, bringing the cost to around VNĐ10.9-11 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. This robust demand is expected to push up prices for urea fertiliser from suppliers in Iran and Egypt. — VNS