Why is the price of fertilizers not falling?
Nitrogen fertilizers have reached their peak prices in the world market. This is evidenced by the latest reduction in the price of urea in the Baltic and the Black Sea.
The price of urea last week decreased by $10/ton in the Black Sea and amounted to $420-440/ton. India is expected to come out with a tender for the purchase of goods for October delivery from 16 to 20 August. Now most of the volumes for September in the main producers are sold out. However, Turkey is also buying urea, Toros held a tender last week for the purchase of 30 thousand tons for delivery in the first half of September.
The demand for urea in the US is so high that the granular product has risen in price by $18 at the port of Nola (USA) ($420-438/t, FOB). In Egypt, the price of granular urea remained stable at about $460/t, FOB - embankment.
Rising freight prices and rising gas prices ($520 per megawatt of gas - September TTF futures price) frighten buyers , who often cannot find nitrogen fertilizers at an adequate price, especially in large quantities, so the goods are often bought in advance. Actually, the purchase in 2-3 months allows the prices for nitrogen fertilizers to remain at a high level. Therefore, a slight reduction in the price of urea in the Black Sea and in the Baltic, in our opinion, is temporary.