US Nitrogen Prices Gain in Late October Amid Rising Exports of Fertilizer
- 27-Oct-2022 4:50 PM
- Journalist: Nicholas Seifield
New York- Nitrogen prices in the US market witnessed an inclination amidst the stable demand from the national and international markets. Major nitrogen applications in fertilizer and other agrochemical products drove the market prices. In the past few weeks, the United States has seen a considerable increase in its exports of nitrogen fertilizers, especially to European countries. As Natural gas prices rise, accompanied by inflation in the regional market, the cost of generating crop nutrient and agricultural fertilizers have made US supplies more competitive. As a ripple effect, the prices of Nitrogen in the US reached USD 767 per MT, FOB Illinois.
According to the market participants, the prices of nitrogen and products like fertilizers have increased due to limited fertilizer supplies. The government of the United States issued a warning earlier about the product shortage that might occur in the regional market putting the manufacturers and suppliers in a dilemma. Due to market inflation, European Nitrogen-based fertilizer manufacturers were pressured to shut down some fertilizer factories. Furthermore, the impact of the conflict between Russia and Ukraine led to food and energy crises. The Fertilizer Institute (TFI) is an industrial group of the US Census Bureau. The Bureau has compiled the nitrogen-based fertilizer export data. According to this data, the United States is the world's third-largest producer and supplier. Hence, the dependency of European countries on the US increased in the past few months.
As per ChemAnalyst, the prices of Nitrogen in the United States may continue to rise constantly on back of firm demand from downstream fertilizers and other agrochemical products. Major market players may witness increase in product enquiries in the coming weeks.