Fertilizer prices today August 29, 2022: Many factories in Europe stop producing fertilizer

fertilizer prices today, August 29, 2022: A series of factories in Europe have stopped producing fertilizers due to skyrocketing gas prices. In the past few days, major fertilizer companies in Norway, Germany, Poland, Lithuania, France, the UK and Hungary have simultaneously announced production cuts or factory closures. According to analysts’ estimates, the market will lose more than 10% of ammonia production, which will further impact global fertilizer prices, which are already high due to the impact of supply chain disruptions and the conflict in Ukraine. Kommersant newspaper quoted experts as predicting that this trend will continue. A sharp reduction in fertilizer use could lead to a food crisis in the European Union (EU). Therefore, the EU will soon pass a directive allowing importers to buy Russian fertilizers. Logistics is currently the biggest challenge related to Russia’s exports. Mr. Dmitry Akishin – Vygon Consulting Company pointed out that gas accounts for 80-90% of the cost of ammonia production. In countries with cheap gas, including Russia, ammonia production facilities often operate at 80-90% capacity due to high competition. Expert Akishin believes that this is the reason why the market finds it difficult to compensate for the loss. He also pointed out good prospects for new production sites being built in Russia. On August 26, the price of gas at the Title Transfer Facility (TTF) trading center in the Netherlands increased to 322 euros/MWh. The price of this commodity has increased dramatically in recent days due to the disruption of Russian gas supply via the Nord Stream 1 pipeline to this market. #fertilizer_price #farmers #western region #fertilizer_price #fertilizer #fertilizer #potassium_price #agriculture #fertilizer #agricultural materials #news #agriculture

source