For the Quarter Ending June 2025
North America
• The Water Soluble Fertilizers (WSF) Spot Price in North America increased by 6.78% quarter-over-quarter in Q2 2025, reflected in a bullish Price Index.
• The water-soluble fertilizer Price Index in the U.S. showed consistent bullish momentum throughout Q2 2025, driven by tight domestic supply and elevated demand during the peak planting season.
• Despite a drop in feedstock costs for some fertilizer components, overall Price Index levels remained firm due to market anxiety over availability and seasonal urgency.
• Limited import volumes—partly due to trade regulations and duties—shifted buyer focus toward domestic suppliers, tightening the market further.
• Producers responded cautiously to growing demand, keeping output limited amid uncertainty surrounding geopolitical risks and future policy adjustments.
• Affordability challenges emerged late in the quarter, although these did not significantly weaken market sentiment, as concerns over future availability continued to drive early procurement.
Why did the price of Water Soluble Fertilizers (WSF) change in July 2025 in the US?
• The WSF Spot Price in the US remained stable in July 2025, as slowing demand followed the previous month’s fill activity and market participants adopted a wait-and-see approach amid trade uncertainty.
• The WSF Demand Outlook weakened due to poor affordability, prompting expectations of reduced phosphate application and possible substitution with alternatives like Micro Essentials.
• Despite a steady WSF Production Cost Trend, limited buying activity and cautious sentiment kept market momentum limited.
• The WSF Price Forecast reflects continued pricing pressure, with a potential decline if affordability issues persist and demand destruction continues through the upcoming season.
APAC
• The Water Soluble Fertilizers (WSF) Spot Price in APAC increased by 6.85% quarter-over-quarter in Q2 2025, reflected in a bullish Price Index.
• The MAP market in Indonesia showed a persistent upward Price Index trend throughout Q2 2025, driven by tight global supply conditions and strong seasonal agricultural demand.
• Limited export availability from China created a constrained supply environment, compelling Indonesian buyers to seek alternate sources and increasing global competition.
• Indonesian importers responded to the bullish market sentiment by actively procuring shipments in anticipation of further Price Index escalation, especially during the peak plantation season.
• Despite affordability challenges, buyers remained active, with many opting for early procurement strategies to secure inventory amid volatile supply and policy uncertainty.
• Port congestion, restricted seller participation, and high logistics costs further limited product availability, adding pressure on the supply chain and reinforcing bullish Price Index dynamics.
• As DAP prices remained elevated, buyers shifted preference toward MAP, supporting steady demand and helping sustain the firm's Price Index trajectory across Q2.
• Overall, the MAP market in Indonesia remained supply-constrained and demand-driven, maintaining an optimistic Price Index trend despite external economic uncertainties.
Why did the price of Water Soluble Fertilizers (WSF) change in July 2025 in Asia?
• Strong agrochemical offtakes continued in July 2025 due to the peak plantation season, driving consistent demand for water-soluble fertilizers.
• Suppliers remained confident in their positions, maintaining firm offers amidst healthy procurement activity.
• Buyers accepted higher prices in anticipation of future supply constraints, contributing to the upward pricing trend.
• Market sentiments are bullish, supported by ongoing seasonal demand and stable supply dynamics.
Europe
• The WSF market in Europe experienced moderate volatility due to fluctuating raw material costs, particularly ammonia and phosphoric acid, which influenced production economics.
• Demand from the agricultural sector remained seasonal, with stronger activity in early Q2 due to spring fertilization cycles, followed by a gradual decline in late June.
• Import volumes saw an uptick during the quarter, contributing to increased competition and localized price corrections.
• MAP prices showed mixed trends, supported initially by firm demand but later softened due to higher inventories and subdued offtakes in late Q2.
• Currency fluctuations within the Eurozone also added to pricing uncertainty, with buyers showing cautious behavior in anticipation of possible cost shifts.
• Overall market sentiment remained stable-to-soft by the end of Q2, with sufficient supply but less aggressive restocking by distributors and farmers.
Why did the price of Water Soluble Fertilizers (WSF) change in July 2025 in Europe?
• Strong supply constraints, including output restrictions from China and new EU tariffs targeting Russian and Belarusian fertilizer imports from July 1, 2025, curbed availability and pushed prices upward.
• High input costs persisted—even though natural gas prices eased modestly in Europe, critical inputs like liquid sulphur surged, driving up production costs for phosphate-based components of WSF.
• Farmer affordability deteriorated—global fertilizer prices rose faster than crop prices, causing affordability indexes to turn negative, amplifying the volatility of WSF prices in July.
For the Quarter Ending March 2025
North America
In Q1 2025, the North American Water Soluble Fertilizers (WSF) market exhibited a mix of bearish and bullish sentiments shaped by seasonal patterns, cost fluctuations, and evolving demand. January started on a subdued note, marked by limited agricultural activity ahead of the planting season and shifting attention toward alternative fertilizers, which kept market momentum restrained. Volatile input costs further clouded outlooks, as market participants remained hesitant amid uneven price signals.
February brought a shift in sentiment as improving weather and early preparations for spring planting sparked renewed buying interest. This led to stronger trade volumes and firmer pricing as players sought to secure supplies in anticipation of upcoming demand, despite continued input cost fluctuations. March maintained a cautiously optimistic tone as seasonal applications slowly gained pace. Although the rise in demand was gradual, favorable weather and improved logistical conditions fostered a more active trading environment. Steady procurement from the agrochemical sector and increased liquidity at key hubs encouraged slight pricing gains and reflected a modest bullish shift.
Overall, the quarter captured a dynamic interplay between slow initial activity and an eventual demand-led revival, highlighting how seasonal, economic, and logistical factors collectively influenced the market’s mixed sentiment during the early months of the year.
APAC
In Q1 2025, the Water Soluble Fertilizers (WSF) market in the APAC region displayed mixed sentiments, largely shaped by seasonal agricultural trends, global supply disruptions, and shifting procurement strategies. January opened on a bearish note, with demand remaining subdued due to the absence of the plantation season, limiting fertilizer purchases from the agrochemical sector. Despite ongoing export restrictions from China, which typically support pricing, the weak domestic demand, and cautious procurement behavior kept the market under downward pressure. However, the market sentiment shifted dramatically in February as the plantation season gained momentum and Chinese export limitations continued to tighten the global phosphate supply. This led to a surge in demand from agricultural buyers looking to secure stock ahead of peak season, further fueled by weather-induced logistical disruptions that constrained supply chains and delayed shipments. As a result, bullish sentiment took hold, with buyers racing to mitigate supply risks and maintain fertilizer availability. By March, bullishness continued in the broader fertilizer space, especially in the Water Soluble Fertilizers segment, where ongoing global supply shortages, cost inflation, and low inventories sustained upward pricing trends. Yet, affordability concerns and purchasing hesitancy tempered the pace of market activity, reflecting a cautious optimism. Overall, Q1 was marked by an evolving balance between supply-side constraints and fluctuating seasonal demand.
Europe
The first quarter of 2025 exhibited mixed market sentiments in Water Soluble Fertilizers due to a combination of demand limitations, regulatory changes, and supply-side uncertainties. In January, poor affordability and the absence of the plantation season curtailed demand, maintaining a bearish tone despite existing supply restrictions. February brought a complex dynamic as the EU introduced trade restrictions on Russian ports, yet exempted fertilizers, preventing immediate disruptions. Simultaneously, delays in CBAM enforcement and the possibility of wider exemptions offered some regulatory relief. However, the proposal of new tariffs on Russian and Belarusian fertilizers raised alarms within the European farming community, fueling concerns about cost escalations. These uncertainties were further amplified by varying regional trends, such as steady demand in Ukraine, tight supply in Western Europe, and sluggish interest in markets like Turkey and Romania. By March, the sentiment remained mixed, as buyers encountered constrained supply choices, particularly from Russia, despite a slight increase in forward offers. Yet, demand recovery remained tepid, and looming tariff proposals added another layer of caution, with market players anticipating potential price hikes. These contrasting forces—regulatory shifts, geopolitical tensions, and uneven demand—shaped a volatile and fragmented landscape across the global fertilizer market during Q1.
For the Quarter Ending December 2024
North America
In Q4 2024, the Water Soluble Fertilizer (WSF) market in the North American region faced consistent bearish trends due to subdued demand, sufficient inventory levels, and limited market activity. Despite fluctuating production costs driven by changes in feedstock prices, oversupply remained a dominant factor, suppressing market sentiment. Ample inventories across the country, combined with a lack of significant buying activity, prevented price recovery.
Imports of WSF increased slightly year-on-year, with higher volumes from key suppliers such as Saudi Arabia and Morocco, while exports declined, particularly to Brazil. Weather-related disruptions, including heavy rainfall in the Midwest, delayed fall applications, and limited demand from the agrochemical sector. These delays, coupled with slower market activity during the peak plantation season, further reinforced the bearish outlook.
December experienced destocking efforts by sellers aiming to reduce inventory levels before year-end, while market players refrained from placing new orders amid weak demand. Limited trading activity and cautious buyer behavior highlighted the challenges faced by the WSF market, as participants focused on balancing supply and demand amidst uncertain economic conditions. This period underscored the critical role of inventory management in navigating a persistently bearish market environment.
APAC
In Q4 2024, the Water Soluble Fertilizer (WSF) market in the APAC region faced sustained bearish trends due to weak demand, oversupply, and export restrictions. Despite rising feedstock costs earlier in the quarter, subdued demand from the agrochemical sector and high inventory levels kept market sentiment low. Production rates remained elevated, contributing to an oversupply situation, although some reductions in output were observed toward the end of the quarter. Export restrictions aimed at ensuring domestic supply and stabilizing prices further constrained market opportunities, leading to cautious buyer behavior and reduced transactions. Demand remained sluggish as domestic buyers hesitated to build winter reserves, while international exports declined, except for stronger shipments to Brazil. Logistical challenges, such as delayed export inspections and halted customs clearances, added to market uncertainty. By December, declining feedstock costs provided slight relief, but producers were focused on clearing existing inventories, reflecting persistent bearish conditions. Speculation over potential policy changes in early 2025 further compounded market hesitancy. The combination of supply imbalances, regulatory constraints, and cautious downstream demand shaped a challenging market environment, underscoring the ongoing difficulties in aligning production with global and domestic demand dynamics.
Europe
In Q4 2024, the Water Soluble Fertilizer (WSF) market in Europe experienced challenges stemming from limited demand and various external factors. Extreme weather conditions across the region hindered agricultural activities, reducing the need for WSF in several key markets. Additionally, affordability issues played a role in curbing purchasing activity, as high production costs and economic pressures affected buyer confidence. Despite these challenges, there were signs of potential market relief towards the end of the quarter. Declines in FOB prices from major exporting countries such as Morocco provided some hope for more competitive pricing in Western Europe. This development led to expectations of slightly lower FCA prices in the coming weeks, which could stimulate more activity in the market. However, the broader market remained cautious as weak demand persisted, compounded by the impact of weather disruptions on the agrochemical sector. Throughout the quarter, inventory levels remained a critical factor, with many buyers hesitant to purchase in large volumes, awaiting more favorable conditions. As a result, market participants had to carefully navigate the complex interplay of supply, demand, and price fluctuations in the European WSF market.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American Water Soluble Fertilizers (WSF) market witnessed a marked decline in prices, with the USA experiencing the most significant reductions. A primary factor driving this trend was the drop in demand from the downstream agrochemical sector, leading to an accumulation of inventory and limited buying activity. This demand decrease left suppliers with excess stock, contributing to a supply-demand imbalance that further pressured prices downward.
Additionally, global supply chain disruptions exacerbated cost pressures, including increased freight charges that added complexity to logistics, ultimately contributing to the downward pricing trend. In the USA, these challenges were especially evident, with WSF prices recording a -4% change compared to the previous quarter. Seasonal factors also played a role, as certain agricultural activities slowed, reducing the immediate need for fertilizers and compounding the bearish market sentiment.
Efforts were made within the industry to revive demand and adjust production to better match market needs; however, these adjustments were not enough to counterbalance the downward trend. By the end of Q3, Mono Ammonium Phosphate (MAP), a prominent WSF, was priced at USD 597/MT in the USA, underscoring the steady decline in pricing throughout the quarter and reflecting the challenging pricing environment faced by the North American WSF market.
APAC
In Q3 2024, the Water Soluble Fertilizers (WSF) market in the APAC region experienced an increase in prices, with China witnessing the most significant price changes. Several factors influenced this surge in market prices. Incline in the demand from the agrochemical sector, especially during the critical planting season, played a pivotal role in driving prices upwards. Additionally, supply chain disruptions, rising global demand, and logistical challenges contributed to the bullish sentiment in the market. The quarter witnessed a consistent trend of escalating prices, reflecting the complex interplay of supply and demand dynamics. During this quarter, China experienced the maximum price changes in the WSF market. Seasonality, increased production costs, and heightened demand from downstream sectors were key drivers of the price surge. Moreover, disruptions in the supply chain and intensified freight charges further bolstered prices. Comparing the first and second halves of the quarter, prices increased by 2%, showcasing a continuous upward trajectory. The quarter-ending price for Mono Ammonium Phosphate (MAP) in China stood at USD 536/MT FOB Qingdao, indicating a persistently bullish pricing environment.
Europe
In Q3 2024, the Water Soluble Fertilizer (WSF) market in Europe witnessed a significant price uptrend, driven by a combination of rising feedstock costs and seasonal demand pressures. A notable factor influencing the market’s bullish trend was the increased production cost, particularly due to fluctuations in the prices of key raw materials. Ammonia prices, in particular, experienced a steep climb, adding considerable upward pressure on WSF costs, while Phosphoric Acid prices remained comparatively stable, balancing the overall production cost structure. The spread between Ammonia, Phosphoric Acid, and WSF prices thus widened, reflecting heightened bullish sentiment in the market. Adding to this was the onset of the plantation season, which spiked demand across Europe as farmers sought enhanced nutrient solutions for their crops, further tightening supply. This seasonal demand surge, coupled with constrained WSF availability, pushed prices higher throughout the quarter. These combined factors amplified the WSF market's value, establishing Q3 2024 as a period of notable growth in pricing and underscoring the market’s sensitivity to both feedstock fluctuations and seasonal agricultural cycles in Europe.
FAQs
1. What are water-soluble fertilizers, and how do they differ from traditional fertilizers?
Water-soluble fertilizers are nutrient formulations that dissolve completely in water, allowing for easy absorption by plants through fertigation or foliar application. Unlike traditional granular fertilizers, WSFs deliver nutrients more efficiently and are ideal for precision agriculture.
2. What crops benefit most from water-soluble fertilizers?
High-value crops such as fruits, vegetables, flowers, and greenhouse plants benefit significantly from water-soluble fertilizers. These fertilizers provide quick nutrient availability, which is especially important during critical growth stages.
3. How are water-soluble fertilizers applied in agriculture?
They are typically applied using fertigation systems (irrigation combined with fertilization) or through foliar spraying. These methods allow precise nutrient delivery, reducing waste and enhancing uptake efficiency.
4. Are water-soluble fertilizers environmentally sustainable?
Yes, when used correctly. Their precise application reduces nutrient runoff and minimizes environmental impact compared to conventional fertilizers. However, overuse can still lead to nutrient leaching, so careful management is essential.
