Two trends have emerged in the global fertilizer market:

-Increase in the price of phosphorus fertilizers

-Strengthening of nitrogen prices.

Monoammonium phosphate (MAP) in Brazil rose in price to 580 dollars. US per ton (CFR), reports Argus. MAR sales intensified, 40,000 tons of Russian product were purchased for $575-580. US per tonne on CFR terms for shipment in June and July 2024. The upper end of this range is $5/t above the midweek Brazilian market cap.

The product is now offered for $585. USA/t, CFR.

Seasonal demand growth, limited supply, as well as less active supply of IDA in the first quarter compared to previous seasons contributed to the increase in prices.

Also, the Southern Hemisphere has entered the phase of active purchases of fertilizers for application in September-October, because now the winter period has begun there. Brazil, Argentina and Chile purchase ammonium sulfate and urea. The price of urea at the beginning of June in Brazil reached the level of 340 dollars. USA/t, CFR.

It should be noted that similar prices (340-345 USD/t, CFR) are observed in Romania and Bulgaria. At the same time, demand reacts weakly to price increases, but there are sales.

In the Black Sea, the price of urea increased following the price jump in Egypt. It is possible that the reduction of the presence of Iranian products in the Mediterranean region played a role here.

In general, the increase in prices for urea in the Mediterranean region resonates with the situation in the EU countries, where, although it is the off-season, purchases continue against the background of the increase in gas prices.

For Ukraine, this means that prices for imported urea will no longer be, as many expected, 18,000 UAH/t, including VAT, at the port, but rather 19,000-20,000 UAH/t, beg, at the port.

It should be noted that imports from Bulgaria have become much more difficult, because after June 18, many drivers do not want to go on a flight, because almost all deliveries from Bulgaria are carried out by motor vehicles either from the country itself or from port berths.

Thus, in Ukraine, the general trend of increasing the price of fertilizers was superimposed by mobilization problems, which only weakened the logistics of fertilizers, making them more expensive and longer.

Source: infoindustria.com.ua