South Korea's export volume of compound fertilizers decreased in the first half of the year

Due to sluggish demand from major export destinations, South Korea's NPK Compound Fertilizer and NP/NPS exports decreased year-on-year from January to June.



Since the beginning of this year, the decline in raw material prices has led to a decline in Npk Compound fertilizer prices, leading most buyers to adopt a cautious attitude when purchasing NPK compound Fertilizer, only purchasing the required quantity, rather than hoarding inventory. The huge gap between buyer and seller price expectations has put pressure on Korean suppliers, who are still using expensive raw materials in NPK Compound Fertilizer production, resulting in a decrease in exports.



South Korea exported a total of 105900 tons of NPKs from January to June, a year-on-year decrease of 29%. During this period, Australia replaced the Philippines as the largest export destination, with the latest trade data showing 25500 tons. Exports to the Philippines decreased by 46% to 19800 tons, while exports to Vietnam decreased by 45% to 14000 tons.



But the shipment volume to Myanmar increased by 55% year-on-year, reaching 20500 tons, thanks to strong purchases by importers who were trapped in high priced urea inventory in the first half of this year and unable to unload it into the domestic market. In contrast, the stable prices of nitrogen, phosphorus, and potassium in China in the first half of this year have prompted Burmese importers to switch to importing nitrogen, phosphorus, and potassium instead of urea.



Due to a decrease in exports to the Philippines, South Korea's NPK exports in June were 29800 tons, a year-on-year decrease of 37%. This year, exports to the Philippines have decreased by more than half to 6600 tons, while exports to Myanmar were 11500 tons, up from 1300 tons in the same period last year.





NP/NPS export decrease



South Korea's NP/NPS exports decreased by 3% year-on-year to 156100 tons, due to a lack of exports to India, with exports to India reaching 27200 tons during the same period last year.



Thailand remains the largest destination for Korean NP/NPS exports, with a shipment volume of 134200 tons, a year-on-year increase of 20%. The main grade to Thailand is 16-20-0+13S, supplied to Thai importer Chia Tai. In June, the export volume of NP/NPS decreased by 12% year-on-year to 31600 tons, mainly due to a 14% year-on-year decrease in shipments to Thailand to 24600 tons.





Demand will continue to be sluggish in the second half of 2023



With the possibility of an El Ni ñ o phenomenon occurring in Southeast Asia in the second half of this year, followed by reduced rainfall and rising temperatures, agricultural activities may be affected, which will lead to a decrease in fertilizer demand in the region.

Korean composite fertilizer suppliers may continue to face challenges in sales. This has prompted manufacturers to search for other export destinations outside the main markets in Southeast Asia. Some suppliers are already considering exporting to non-traditional destinations such as Africa and Europe.

Compound Fertilizer, Monoammonium Phosphate, Potassium Chloride, Potassium Sulfate