The world market prices for nitrogen fertilizers are rising

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Posted on: 5 May 2012

The world market prices for nitrogen fertilizers are rising (including Ukraine)

The world market of nitrogen fertilizers experiances an unprecedented rise in prices, which spurred demand in the largest markets - the U.S. and India. Support the growth of prices has had a disruption of supplies of urea in Iran, India and Pakistan. The latter tried to exchange the sugar on his Iranian urea, but failed. A threat to the energy crisis has turned Pakistan into a major consumer of imported fertilizers.

Pakistan needs 600 tons of urea, but buys only 250 thousand tons which means that it has released for the purchase of imported fertilizers. Thus, Pakistan is the manufacturer of the fertilizer turned into a major consumer of urea. Underdelivery of urea by Iran to India and Pakistan have created a vacuum that will inevitably impact on the price lists of suppliers. Thus, at the FOB, Black Sea urea in April was quoted at $ 510/ tonne.
In Egypt, the urea is offered at $ 700-710 / t If you look at the dynamics of the pricing of fertilizer nitrogen in 2008, we see that the current rates have almost reached the level of May 2008 For example, the weighted average quotation of urea in May 2008 reached $ 555 / tonne, and the demand makes it likely scenario when 2012 was to repeat the event in 2008, when a sharp rise in prices in the market in the summer as early as November has changed in the same sharp decline. Such pricing shake-up are perceived as fall of the market.

The U.S. actively buys urea and ammonia of foreign production. Such prices encouraged domestic production of fertilizers, but U.S. authorities apparently hold different opinions. Romania last week closed a deal to supply 25 thousand tons of urea in the U.S. at a price of $ 540 per tonThe Port of Tampa, USA, its maximum value at the last week amounted to $ 500 per ton. This has led to increase of cost of fertilizer in the Black Sea, FOB from $ 440-460 per tonne to $ 470-475.

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Posted: 05 May 2012

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