Implementing the strategy of product diversification, following the success from 2021, besides the fertilizer segment, the chemical production and business activities in the first 6 months of 2022 of PetroVietnam Fertilizer and Chemicals Corporation (PVFCCo – stock code DPM) has achieved many outstanding achievements.

PVFCCO's chemical products are mainly specialized chemicals such as ammonia, urea formaldehyde, CO2 and specialized petroleum chemicals, with a total production output of over 600,000 tons per year, of which the largest is ammonia. NH3) with 540,000 tons/year.

Regarding ammonia, according to CRU news agency, the average price of ammonia in Southeast Asia in 2020 is only $ 242 / ton FOB, in 2021 it is $ 558 / ton FOB. Meanwhile, at the present time, the average price in the first 7 months of 2022 has reached $851/ton FOB, equal to 152% compared to 2021 and 351% compared to 2020. Against the backdrop of tensions in Russia – Ukraine There is no end, ammonia producers in Europe have to continue to cut output or stop production due to lack of gas raw materials, it is forecasted that in the second half of the year, ammonia prices will continue to increase and remain high.

Meanwhile, in the first 6 months of 2022, PVFCCO's ammonia supply to the market was at a high level of 36,000 tons, estimated at 70,000 tons in 2022. Thereby, PVFCCO continues to affirm its leading position in supplying ammonia to thermal power plants, monosodium glutamate, rubber, etc., maintaining a market share of about 90% in the southern market.

Benefiting from high world chemical prices, the profit margin of chemical products has grown strongly, especially for ammonia products. If in 2020, the gross profit margin of chemicals will reach 23%, then in 2021 it will reach 46% and in the first 6 months of 2022 there will be a remarkable growth, up to 55%.

It is known that since 2018, with the operation of the expansion project of Ammonia Factory, PVFCCO has not only been proactive in raw materials for urea and NPK production but also has a large amount of products to supply to manufacturers. production and consumption in the domestic market.

Besides fertilizer products, with the strategy of diversifying chemical products to "go on two legs" in recent years, it has shown that PVFCCO's new investment activities in this field are very right. promote advantages in the context of a volatile chemical market, demonstrating the long-term strategic vision of the enterprise.

Implementing the strategy of product diversification, following the success from 2021, besides the fertilizer segment, the chemical production and business activities in the first 6 months of 2022 of PetroVietnam Fertilizer and Chemicals Corporation (PVFCCo – stock code DPM) has achieved many outstanding achievements.

PVFCCO's chemical products are mainly specialized chemicals such as ammonia, urea formaldehyde, CO2 and specialized petroleum chemicals, with a total production output of over 600,000 tons per year, of which the largest is ammonia. NH3) with 540,000 tons/year.

PVFCCO maintains its leading position in ammonia supply in Vietnam – photo 1

Regarding ammonia, according to CRU news agency, the average price of ammonia in Southeast Asia in 2020 is only $ 242 / ton FOB, in 2021 it is $ 558 / ton FOB. Meanwhile, at the present time, the average price in the first 7 months of 2022 has reached $851/ton FOB, equal to 152% compared to 2021 and 351% compared to 2020. Against the backdrop of tensions in Russia – Ukraine There is no end, ammonia producers in Europe have to continue to cut output or stop production due to lack of gas raw materials, it is forecasted that in the second half of the year, ammonia prices will continue to increase and remain high.

PVFCCO maintains its leading position in ammonia supply in Vietnam – photo 2

Source CRU: Fertilizer Week – Price Forecasts August 2022

Meanwhile, in the first 6 months of 2022, PVFCCO's ammonia supply to the market was at a high level of 36,000 tons, estimated at 70,000 tons in 2022. Thereby, PVFCCO continues to affirm its leading position in supplying ammonia to thermal power plants, monosodium glutamate, rubber, etc., maintaining a market share of about 90% in the southern market.

Benefiting from high world chemical prices, the profit margin of chemical products has grown strongly, especially for ammonia products. If in 2020, the gross profit margin of chemicals will reach 23%, then in 2021 it will reach 46% and in the first 6 months of 2022 there will be a remarkable growth, up to 55%.

It is known that since 2018, with the operation of the expansion project of Ammonia Factory, PVFCCO has not only been proactive in raw materials for urea and NPK production but also has a large amount of products to supply to manufacturers. production and consumption in the domestic market.

Besides fertilizer products, with the strategy of diversifying chemical products to "go on two legs" in recent years, it has shown that PVFCCO's new investment activities in this field are very right. promote advantages in the context of a volatile chemical market, demonstrating the long-term strategic vision of the enterprise.