Fertilizer price today September 23, 2022: Imported DAP volume increased

fertilizer prices today, September 23, 2022: The amount of imported DAP goods increased, when a quantity of Chinese DAP goods was just cleared through customs. Domestic fertilizer prices remained stagnant at a high level. According to a recent fertilizer industry outlook report by BIDV Securities (BSC), high gas prices have caused a wave of fertilizer capacity cuts in Europe, reducing the world’s fertilizer supply. Natural gas prices in the US and Europe tend to increase rapidly again as the gas crisis is getting worse. Natural gas prices in the US are 2.2 times higher than the same period last year and in Europe are 4.5 times higher than the same period last year. BSC believes that it is not easy for Europe to solve the problem of natural gas supply to replace Russia because the EU needs time to build technical infrastructure to transport and receive natural gas from outside as well as internally between EU countries. At the same time, LNG imports are also limited due to the lack of receiving ports, storage facilities and limited regasification capacity. BSC expects natural gas prices to remain high in late 2022, which will spur a wave of fertilizer production cuts in the EU. With high energy prices, Europe has cut about 25% – 30% of nitrogen fertilizer capacity and at least 50% of ammonia (NH3) capacity in Europe has been cut. Fertilizer production cuts in Europe will be more severe when the region enters winter. Fertilizer supply is unlikely to increase sharply again in the short term as factories usually operate at 85% – 100% capacity. Domestic urea prices and input material prices (FO Singapore) are moving in a direction that is favorable for nitrogen gas production enterprises. The average urea price in the first 8 months of 2022 was 60% higher than the average for the whole year of 2021, while the figure for Singapore FO oil was only 38%. However, fertilizer consumption demand tends to decrease in 2022, especially in the second quarter. The reason is that rice prices are lower than the same period and the peak summer-autumn fertilizer season, high fertilizer prices cause farmers to reduce their usage. #fertilizer_price #farmers #western region #fertilizer_price #fertilizer #fertilizer #potassium_price #agriculture #fertilizer #agricultural materials #news #agriculture

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