World prices for fertilizers continue to fall

17/03/2023 10:55

Global fertilizer prices are falling as storage is full and supply continues to increase as gas prices fall. This is reported by "Economic Truth" with reference to the German publication agrarheute.
"Nitrogen fertilizer costs continue to fall, with prices under severe pressure from weak demand and a further fall in gas prices, analysts at CRU noted in their weekly market review," it said.
According to analysts, a sharp drop in natural gas prices has led to an increase in urea production in Europe to about 60-65% of normal from 20-30% last year. Europe accounts for only 5% of global urea production, but that's still 11.3 million tons of product, which has a serious impact on prices.
After the completion of the Indian tender, urea prices in most regions fell by another $20-30/t. The Indian urea tender was settled at delivery prices to India of $330/t, which translates to around $310/t for Middle East exporters.
Calcium ammonium nitrate, the most important nitrogen fertilizer used by German farmers, is currently only around €385/t.
Ammonium nitrate prices continue to decline rapidly, with Russian ammonium nitrate falling another 10% below $250 last week.
Ammonia prices also continued their downward trend, with the price in the Middle East falling by almost $70/t, as demand for ammonia in Asia is virtually non-existent.
At the same time, the price of urea has fallen by almost 24% on the Ukrainian market since the beginning of the year, which is the largest indicator among all nitrogen fertilizers.
As noted, in January and the first half of February, saltpeter was the leader in falling prices at Ostchem (Group DF). At present, urea shows the greatest rate of decline, the recommended price of which has fallen by 9.4% (3,000 UAH) to 29,000 UAH/t since March 2, SRT. This is the third price reduction by the company this year. In general, since January, urea has become cheaper by 24%.
At the same time, "DniproAzot" did not change the price until the end of last week, but in the current week, it also lowered prices by UAH 3,000. Thus, the producer from Kamianskyi offers urea at a higher price — 29,500 UAH/t in big bags and 29,700 UAH/t in bags at the factory.
Such actions of Ukrainian producers shortly before the start of the season became possible due to the reduction of gas prices and, to a large extent, due to the pressure of importers.

Global fertilizer prices are falling as storage is full and supply continues to increase as gas prices fall. This is reported by "Economic Truth" with reference to the German publication agrarheute.

"Nitrogen fertilizer costs continue to fall, with prices under severe pressure from weak demand and a further fall in gas prices, analysts at CRU noted in their weekly market review," it said.

According to analysts, a sharp drop in natural gas prices has led to an increase in urea production in Europe to about 60-65% of normal from 20-30% last year. Europe accounts for only 5% of global urea production, but that's still 11.3 million tons of product, which has a serious impact on prices.

After the completion of the Indian tender, urea prices in most regions fell by another $20-30/t. The Indian urea tender was settled at delivery prices to India of $330/t, which translates to around $310/t for Middle East exporters.

Calcium ammonium nitrate, the most important nitrogen fertilizer used by German farmers, is currently only around €385/t.

Ammonium nitrate prices continue to decline rapidly, with Russian ammonium nitrate falling another 10% below $250 last week.

Ammonia prices also continued their downward trend, with the price in the Middle East falling by almost $70/t, as demand for ammonia in Asia is virtually non-existent.

At the same time, the price of urea has fallen by almost 24% on the Ukrainian market since the beginning of the year, which is the largest indicator among all nitrogen fertilizers.

As noted, in January and the first half of February, saltpeter was the leader in falling prices at Ostchem (Group DF). At present, urea shows the greatest rate of decline, the recommended price of which has fallen by 9.4% (3,000 UAH) to 29,000 UAH/t since March 2, SRT. This is the third price reduction by the company this year. In general, since January, urea has become cheaper by 24%.

At the same time, "DniproAzot" did not change the price until the end of last week, but in the current week, it also lowered prices by UAH 3,000. Thus, the producer from Kamianskyi offers urea at a higher price — 29,500 UAH/t in big bags and 29,700 UAH/t in bags at the factory.

Such actions of Ukrainian producers shortly before the start of the season became possible due to the reduction of gas prices and, to a large extent, due to the pressure of importers.

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