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To Secure Domestic Ammonia Supplies, Russia Raises its Nitrogen Fertilizer Export Quotas

To Secure Domestic Ammonia Supplies, Russia Raises its Nitrogen Fertilizer Export Quotas

To Secure Domestic Ammonia Supplies, Russia Raises its Nitrogen Fertilizer Export Quotas

  • 30-Nov-2022 2:33 PM
  • Journalist: Motoki Sasaki

Russian Ammonia supplies have been the most in talks as Moscow set an export quota for Nitrogenous fertilizers following an increase in the price of Natural gas, which is required to manufacture nitrogen fertilizers (Ammonia). This export quota sanction was needed to stop the shortage of Nitrogenous fertilizers like Ammonia in the domestic market and lower escalating Fertilizer prices in the domestic and other European markets. The researchers concluded that a significant amount of fertilizer was likely frozen at European ports, which was the primary issue. The most recent pricing estimate for Anhydrous Ammonia Prices on a FOB Novorossiysk basis was USD 824/MT in the Russian market.

Recently, the export limit for nitrogen fertilizers like Ammonia in Russia was increased by 750,000 tonnes on Monday. According to the statement, the decision allows Russian fertilizer manufacturers to send larger quantities for export due to domestic market saturation. According to the information, the Industry and Trade Ministry has reportedly been instructed to disperse increased volumes among exporters. On Wednesday, Putin declared that Russian authorities would strive to restart Ammonia exports and free Russian fertilizers that were stuck at European ports.

Amidst the crisis, Yara International recently urged the European Union's governments to ensure nitrogen availability for fertilizer and nonfertilizer uses. According to Yara, the EU's package of remedies for the European fertilizer industry should have two primary components. The EU must first guarantee fertilizer factories' ongoing access to natural gas to the Ammonia producing firms. To maintain the output, fertilizer companies require natural gas as a raw ingredient. Second, Yara wants the EU to strengthen the strategic independence of Europe. According to Yara, European authorities should prioritize the supply of raw materials for European nitrogen production to reduce carbon emissions and avoid the emergence of new dependencies.

ChemAnalyst predicts that the Russian domestic supply of Ammonia will rise by roughly 15-20% in the coming quarter. The Russian fertilizer market, which comprises the majority of European production, is expected to have a positive future, according to ChemAnalyst.

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