Fertilizer prices are rising. Agrochem Puławy Company Provided Price List

Russia is the main supplier of all nutrients to crops. Its attack on Ukraine is already translating into higher fertilizer prices in the world. The company Agrochem Puławy has published a new price list for multi-component phosphorous-potassium fertilizers, which are becoming more expensive. The company has not changed the prices of nitrogen fertilizers, the price list is valid as of January 28, 2022.

It’s March, so intense fieldwork is going on. Sowing fertilizers, not only nitrogen fertilizers, but also the use of natural fertilizers. Due to the high prices last year, and also in 2022, many farmers decided to limit their orders, but many also, due to the high prices of agricultural products, especially rape, want to take care of the final yield and invest in this crop.

So far, prices in our fertilizer outlets have not increased. Market examination in progress. Also, Agrochem Puławy (the authorized distributor of Grupa Azoty), which usually updates the price list of nitrogen fertilizers at the end of the month, has not yet done so. The page displays the page from January 28. However, the compound fertilizer prices were updated on March 2 this year. And in this case there were increases.

Will prices go up?

There are many indications that fertilizer will become more expensive due to the very difficult situation in our eastern neighbours. It is already becoming more expensive, and it is rapidly increasing in world markets.

Here’s the latest Twitter post from Josh Linville, a fertilizer manager at StoneX, reporting on higher fertilizer prices. Urea – $700 per ton, urea nitrate solution – $600, ammonium phosphate – $900.

And earlier on the same day, that is, on March 2, 2022, he reported that the loss of Chinese and Russian exports of phosphates means a loss of nearly half of all global exports. The price of a ton of ammonium phosphorous on January 25, 2022 was $ 665, and on February 28, 2022 – $ 865. Now it’s $900.

We must bear in mind that the value of the zloty is declining and that 1 dollar costs about 4.3 PLN.

Impact of the war on the fertilizer market

The price of fertilizer is determined by the international market. The production of nitrogen fertilizers requires a large amount of natural gas. Natural gas prices rose in Asia (Russia and China) and Europe after October 2021 due to the cold winter and increased heating consumption. As more natural gas is used for heating, the availability of natural gas for the fertilizer industry has decreased. As a result, the price of nitrogen on the international market doubled from October 2020 to December 2021, and the situation was assessed by the Soil Portal.

China accounts for 30% of the global nitrogen trade. Due to the shortage of natural gas, China suspended sales of nitrogen fertilizers in the international market in October 2021 until July 2022. As China sells fertilizers containing both nitrogen and phosphorous, the energy crisis has also had an impact on phosphorous fertilizer prices. Russia has large reserves of natural gas and supplies about 40% of the natural gas used in Western Europe. Gas pipelines from Russia to Western Europe pass through Ukraine. We are concerned that the war in Ukraine may affect the supply of natural gas to Europe. If natural gas availability in Europe is lower, it may reduce production of nitrogen fertilizers and import more fertilizers. Rising nitrogen demand will certainly affect nitrogen fertilizer prices, analysts at soil fertility website ces.ncsu.edu said.

The long-term impact of the war on fertilizer prices

German agrarheute.com recently reported that fertilizer prices have been relatively stable recently. At least on paper. But this can change quickly.

-Depending on how long the Russian invasion will last and the impact of sanctions, fertilizer prices will follow new changes. likely to increase. In any case, before the start of spring orders, it seems that there is no chance of a sharp drop in prices – neither in Europe nor in the United States. There were also reports this week from China of higher fertilizer prices – but most potassium fertilizers – informed the portal.

The problem is that Russia is one of the world’s most important suppliers of fertilizers and related raw materials such as sulfur. Last year, the Russians were the largest exporter of urea, multi-component NPK fertilizers (nitrogen, phosphorous, potassium), ammonia, UAN and ammonium nitrate. It is also the third largest exporter of potash in the world and the fourth in terms of phosphate and sulfur. These gaps can actually be filled by alternative sellers, as agrarheute.com evaluates.

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