Inside Fertilizer

Little demand for KAS, but price increase nonetheless

26 July 2018 - Anne Jan Doorn

Prices for energy and urea are rising worldwide. The producers of KAS have therefore decided to raise prices. However, there is currently little demand for fertilizers due to the drought.

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Currently, approximately €20 to €21 per 100 kilos (loosely deposited) is paid for KAS (lime ammonium nitre). This means that the price is stable to slightly increasing, compared to last month. Almost €30 per 100 kilos is paid for Kali. However, it is expected that the KAS price will rise further.

The industry has indicated that it will increase prices again in the coming months. The global urea price has risen by more than $6 per tonne in 50 months. The main reason for this is the more limited supply of urea from China.

This concerns a decrease of 14 million tons (in 2 years). In addition, Iran, as a major producer of urea, is no longer a match for the importing countries. This is a result of the import duties from the United States (US). 

Disappointing harvest
Although the fertilizer trade indicates that prices will rise, they are also keeping their fingers crossed. If the harvests are disappointing internationally, the price for urea may also drop again (this will mainly happen in the autumn).

In recent weeks there has been little demand for the various fertilizers. The reason for this is the dry weather. When rain falls again, demand will increase again. The fertilizers, which were purchased for the third and fourth cutting of grass, for example, are often still unopened in stock.

Store well
Wholesale Triferto advises, among other things, to store that loose product well covered (with plastic foil). It is also better not to store fertilizers in bags outside, given the high temperatures. This can cause the granules to crush, which reduces the spreading properties of the product.

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