'Farmers will be shocked by the high CAN prices in the short term', reports both industry and trade. So far, the price has remained quite stable. However, given that the natural gas price is 50% higher and there is a lot of demand, the price will be pushed up. The long term, however, paints a slightly different picture.
The price for KAS (lime ammonium nitrate) has fallen slightly recently. KAS (27% nitrogen) currently quotes a price of approximately €19 to €20 per 100 kilos, delivered to the farm (loose). Delivery per big bag costs between €20,50 and €21,50 per 100 kilos. That is something lower than in May.
The Kali price is stable to slightly increasing, traders report. Between €30 and €32 is paid per 100 kilos for delivery in big bags. €36 per 100 kilos is paid for triple superphosphate. Traders notice that there is a lot of demand.
Less demand
However, in the long term, demand is expected to decline. This is evident from a report by Fertilizers Europe. A small decrease in nitrogen use is expected in Europe over the next 10 years. Last year, use already fell by 5%. The use of phosphate and potassium will increase by about 6%.
In 2017, 11,2 million tons of nitrogen were used on 134,5 million European hectares. More fertilizer will be used in Eastern European countries in the next 10 years. In countries such as Poland and Bulgaria, NPK use will increase sharply (+30%) over the next 10 years. However, a decrease in nitrogen use (-15%) is expected in the Netherlands.