Fertilizer prices today March 13, 2022: Fertilizer prices remained stable at the end of the week after a sharp increase yesterday.

fertilizer prices today, March 13, 2022: Fertilizer prices remained flat at the end of the week after a sharp increase yesterday. The Fertilizer market last week increased significantly, returning to nearly the highest level in 2021. As the situation in Russia – Ukraine has not cooled down, fertilizer prices are still greatly affected and are expected to increase in the coming time. Since the outbreak of the Russia – Ukraine conflict, global commodity prices have been constantly volatile and fertilizer is one of the commodities with the strongest increase. In just 2 weeks (from February 25 to March 11), the price of Urea fertilizer traded on the international market has skyrocketed by 43 – 46%, equivalent to an increase of 240 – 300 USD/ton compared to the time before the conflict. Accordingly, the price of granular Urea in Egypt has set a new peak of 950 USD/ton (FOB) for spot contracts. Similarly, the price of granular urea in the US and the Middle East also increased sharply to 807.5 USD/ton (FOB) and 872.5 USD/ton (FOB). The April futures contracts even exceeded the threshold of 1,000 USD/ton (FOB). The price of DAP in the US Gulf also set a new peak of 950 USD/ton (FOB), an increase of 221 USD/ton compared to the previous one. The world Fertilizer market is heating up day by day following the developments of the conflict between Russia and Ukraine. Fertilizer prices in some regions are now equal to or higher than the peak reached in 2021. Although the sanctions imposed by the US and Western countries on Russia do not directly affect the fertilizer sector, it still makes buyers worried about the disruption of exports from Russia. Therefore, importers have increased purchases and are willing to buy at higher prices from other manufacturers. Many traders and importers around the world have stopped booking new shipments from Russia due to concerns about financial, banking and insurance restrictions affecting shipments from Baltic/Black Sea ports. Russia is one of the world’s largest fertilizer exporters. In 2021, it exported 7 million tons of urea, accounting for 14% of global trade, and 5.9 million tons of NPK. At the same time, Russia and Belarus also account for nearly 50% of the world’s potash supply. The rise will continue The conflict between Russia and Ukraine has not only disrupted supplies from these two countries, but it has also had a strong impact on global fertilizer production. According to Bloomberg, European fertilizer producers, including Yara International ASA and Borealis AG, are cutting production due to high natural gas prices, increasing the risk of global food inflation. The conflict between Russia and Ukraine has roiled global commodity markets and sent the price of natural gas, a key ingredient in nitrogen fertilizer, to record highs. That has forced producers to curb ammonia output, pushing up farm input costs and raising the risk of a global food price shock. Yara said it would temporarily cut production at Ferrara in Italy and Le Havre in France. The two plants produce 1 million tonnes of ammonia and 900,000 tonnes of urea a year. Yara’s European ammonia and urea production is expected to fall to 45% of capacity following the decision. Natural gas is used as a feedstock for nitrogen fertilizers, which typically account for about 80% of producers’ costs. But gas futures in Europe are now 10 times higher than they were a year ago. Global food prices hit a record high last month, shortly after the conflict between Russia and Ukraine broke out. Meanwhile, Borealis, another European fertilizer producer, is also cutting ammonia production capacity due to high gas prices. The company is also considering suspending operations for “economic reasons”. Another fertilizer producer, Nitrogenmuvek Zrt of Hungary, has also suspended ammonia production, while other fertilizer producers are considering doing the same. Lukas Pasterski, a representative of the European Fertilizer Association, said companies cannot afford to continue to produce fertilizer at current gas prices and store the product for later sale. Thus, it can be seen that the global market is facing a supply crisis. According to international experts, world fertilizer prices could reach unprecedented highs in the near future if the tension between the parties continues. #fertilizer_price #farmers #western_region #fertilizer_price #fertilizer #fertilizer #fertilizer #potassium_price #agriculture #fertilizer #agricultural materials

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