The dry growing season has resulted in low demand for fertilizers. Nevertheless, the prices for KAS and Urean are rising sharply, while the prices for potash may fall.
Despite the local 'tame' market, fertilizer prices have been increasing since the start of the new season streamer On. This has political reasons, but is also caused by international markets. For example, legislation in Europe is making urea use less and less interesting. In Germany, from 2020, urea must be incorporated immediately after full-field application, which increases demand for the alternative KAS.
The price for KAS has risen quite rapidly (+€35 per tonne since July). The largest price increase however, is now over. The price for KAS is expected to increase monthly by €3 to €5 per tonne in the coming months. KAS currently pays more than €21 to €23 per 100 kilos (in bulk).
More potash from Russia
The price of potash is currently rising steadily and will continue to rise in the near future. In addition, the supply of potassium 60 from Russia will also increase in 2019. The market is already well supplied, which may cause price drops in the longer term. Nearly €30 per 100 kilos is currently paid for loose potash.
Urean may become more expensive in the short term, reports Joris Broekhuis of Triferto. "European producers have asked the European Commission to impose an anti-dumping measure on imports of Urean from Russia, Trinidad, Tobago and the United States (US). The reason for this is the fact that Urean is produced in the US with cheap shale gases. produced."
He continues: "As a result, traditional exporters are no longer suppliers to the US. They are now dumping their products on the European market. In addition, Urean from Russia is also produced with cheap gases. Although it is still unclear whether the anti-dumping measures will be implemented, the prices for Urean already."
China produces less
The increase in the price of nitrogen fertilizers is mainly due to the lower production of fertilizers in China. The country produces about 30% to 35% less urea, because several coal-fired production sites have been closed. "For a long time, market analysts thought that China would restart its old factories if sales prices improved, but that plan now seems to have been scrapped," says Broekhuis.
The political games of American President Donald Trump also influence prices. In particular, the trade restrictions he has imposed on various countries (that do business with Iran) have ensured that they are no longer a supplier to the rest of the world.