Why is the price of fertilizers not falling?

Nitrogen fertilizers have reached their peak prices in the world market. This is evidenced by the latest reduction in the price of urea in the Baltic and the Black Sea.

The price of urea last week decreased by $10/ton in the Black Sea and amounted to $420-440/ton. India is expected to come out with a tender for the purchase of goods for October delivery from 16 to 20 August. Now most of the volumes for September in the main producers are sold out. However, Turkey is also buying urea, Toros held a tender last week for the purchase of 30 thousand tons for delivery in the first half of September.

The demand for urea in the US is so high that the granular product has risen in price by $18 at the port of Nola (USA) ($420-438/t, FOB). In Egypt, the price of granular urea remained stable at about $460/t, FOB - embankment.

Rising freight prices and rising gas prices ($520 per megawatt of gas - September TTF futures price) frighten buyers , who often cannot find nitrogen fertilizers at an adequate price, especially in large quantities, so the goods are often bought in advance. Actually, the purchase in 2-3 months allows the prices for nitrogen fertilizers to remain at a high level. Therefore, a slight reduction in the price of urea in the Black Sea and in the Baltic, in our opinion, is temporary.

Source: Infoindustria

Related Articles
The RICHFIELD group of companies offers mineral fertilizers at favorable prices with the possibility of payment upon loading in the warehouse or delivery to the farm.
The Government of Ukraine has unified the normative monetary valuation of land plots
The Government of Ukraine has adopted a historic resolution for land reform.
Ministry of Agrarian Policy signs annex to Memorandum of Understanding with grain market participants
On October 19, grain market participants and the Ministry of Agrarian Policy and Food of Ukraine signed an annex to the Memorandum of Understanding for the 2021/2022 marketing year.
Ukraine raised agricultural production sizably in January-August
In January-August 2021, the production volumes of agricultural commodities in all categories of Ukrainian agricultural households increased by 8.4% compared with the same period last year, reported the State Statistics Service of Ukraine.
Export terminal construction prearranged in Pivdenny port
Techagro company is considering a greenfield terminal construction in the Port of Pivdenny. The facility will specialize in reception and transshipment of grain and oilseed crops.
Peculiarities of zonal fertilization systems
The publication considers the features of zonal fertilizer systems of Ukraine.
Features of application of potassium fertilizers
The article considers the features and nuances in the application of potash fertilizers, taking into account the types of soils and crops to which they are applied.
Cherkasy "Azot" completed the modernization of the ammonia production plant
At Cherkasy-based Azot, part of the Group DF group of nitrogen enterprises, the modernization of the A-5 ammonia production plant has been completed. Investments amount to UAH 22.28 million.