The prices of KAS have been increased several times since mid-September. Although this is not entirely unusual during this period, it seems that producers do not have much CAN available for immediate sale.
Fertilizer prices depend on many factors. The main reason, cited by the industry, is the age-old principle of supply and demand. "There is a high demand and good sales of CANAS. In addition, the demand for urea on the world market is greater than the supply. China is responding in the context of the 'Clean air act' by actively shutting down coal-fired installations where urea is produced. This will lead to China becoming a net exporter and a net importer. So more demand than the current supply," a spokesperson for ForFarmers explains.
Increasing price level
Prices ended up higher at the end of the previous season than the previous season. According to the company, the current level is therefore approximately €30 per tonne higher.
At the beginning of September, prices were between €19 and €20,50 per tonne. In the second week of September, the industry implemented an increase of 5,5%, and after that a few more percentages were added.
Movement in nitrogen
A further increase is expected in the coming period. "The market is expected to increase further towards the spring. The extent of the increase depends on several factors and differs per industry. All other nitrogen-containing fertilizers are also seeing movement at the moment."