Fertilizer Update – 03-03-2022
The situation with Russia is now impacting significantly on the fertilizer markets around the globe and, the spike in gas and oil prices will not have passed you by.
This morning the London Stock Exchange suspended trading of one of the largest phosphate producers in the world; Phosagro whose product does come into the UK. Russia is the second largest supplier of DAP to EU & UK markets and it is being reported that few vessels are available to fix shipments in light of recent sanctions.
Urea out of Egypt, a key UK source, continues to rise, up by over $200 since last week; some suppliers in Egypt are reported to be sold out now to the end of March. Certainly, UK prices are now moving up to follow.
CF has withdrawn UK prices due to unsustainable gas prices and producers of AN in continental Europe are reluctant to offer products to importers because of the uncertainty in rising gas prices. However, major European producers have noted that gas continues to flow from Russia and therefore production continues, at a price.
Industry experts have concerns over ammonia and feel this is highly exposed due to the current conflicts, followed by potash and urea industries. But, there are other world sources who could fill these gaps.
Suppliers are still offering: urea, imported AN, Yara solid fertilizers (except Prilled AN), blends, straights, PK’s, NPK’s.
My interpretation of events right now is that the only certainty is uncertainty; we need to prepare for continued price volatility and the potential for supply chains to be even more challenging.
I would ask you to let us know if you are going to need products for March, April and May simply so that we can contact you. Please email to [email protected].
Thank you for your continued support.
Fertilizer Sector Head