Compared to the price level at the end of the fourth quarter of 2023, in February they were 20% higher.

The decline in supply in the East and Oceania and requests for the purchase of fertilizer in Turkey and Europe contributed to the increase in prices. On January 4, National Fertilizers Limited (NFL) was able to contract 0.647 million tons of urea out of the planned 1 million tons. Usually, India traditionally avoids large purchases at the beginning of the year, but this time it was not possible to close the tender in full.

Traders in Turkey and Europe started to close short positions. In Egypt, prices rose from $330 to $400 per ton fob in a few days. Gradually, the trend spread to the Middle East, Nigeria and Southeast Asia.

In Southeast Asia, problems with the availability of large batches of fertilizers began. This was observed in Indonesia and Malaysia. In Bintulu, the Petronas plant stopped for 60 days for repairs. Export restrictions in China also have a significant impact. Due to the early onset of the rainy season, Australian farmers began to massively buy fertilizers from Southeast Asia. Last time it cost them $390 per ton fob. Vietnam, which rarely exports urea in significant quantities, has already taken advantage of the situation, and has not given up this opportunity now.

Although the European market began to show activity, it was rather restrained. The reason is the low price of gas in Europe, which allows European farmers to be satisfied with locally produced fertilizers. However, prices rose from $350 to $400 per ton CFR.

Source:infoindustria