Vietnamese fertilizer producer PVCFC has pushed back the commissioning of its new NPK unit in Ca Mau to the end of August because of delayed construction work, marking its second postponement.
The firm originally intended to commission the 300,000 t/yr unit in southern Vietnam in early June but bad weather initially saw it delayed to July. Commissioning has now been pushed back further for unspecified reasons around the construction delays.
Vietnam is experiencing a sharp reduction in overall fertilizer demand this year because of poor returns for crops including rice, coffee and pepper.
But Vietnam's domestic production of NPKs has increased in recent years through companies including PVFCCO and KVF that have added units.
NPK imports during January-May totalled around 161,000t, or down by 16pc from a year earlier, according to customs data, highlighting the impact of increased domestic supplies and weak demand.
While not stated as a reason, weak fertilizer demand is part of the current market environment around this delayed commissioning.
Market focus is now turning to Vietnam's highlands with coffee sector demand to run through to September. This should stimulate more offtake for NPKs, especially with added sulphur.
The Ca Mau NPK unit should be on stream for the next season in the Mekong delta, starting around October.
