Prices and demand for fertilizers will be reduced

the Industry of mineral fertilizers, which is still not too suffered from coronavirus, is now showing signs of the fall due to logistical problems and a shortage of seasonal workers in the EU and the USA. If the segment of phosphate fertilizers support the disruption of production in China, nitrogen fertilizers remain under pressure from low gas prices.

Introduced by most countries of the quarantines has led to shortages of truck drivers and workers for seasonal agricultural work, which, coupled with reduced lending and the high volatility of the currency leads to a decline in fertiliser demand and pressure on prices.

Prices on phosphorus fertilizers still supported the closure of the largest industrial center in China, so in early April DAP/MAP main ports prices were 274-350 $/T. Now the global market buys fertilizer only India, which has acquired 400 thousand tonnes of DAP for delivery in April-may. But since April 3, the government of India reduces the subsidy on DAP by 2% compared to 2019, which will affect demand. In the United States at the beginning of river navigation and the expansion of sowing areas of maize by 8% and soybeans by 10% there is a revival of demand.

the Demand for nitrogen fertilizer, in particular urea, ammonium nitrate and ammonia is traditionally decreases from April to June. India is one of the largest importers of RCF, presumably in early may will reduce the tender from 1.7 to 1 million tonnes amid the high prices (at least 251,9 $/t CFR for the West coast and 257,65 $/t for the East. In the near future experts do not expect a significant decline in prices, which are now at the level 218-265 $/t

Prices on potash remain at the level of 184-232 $/t FOB Baltic,although there is a decrease in demand due to large stocks in China (4 million tons with annual consumption of 9 million tonnes) and reduction of state subsidies in India. Both countries have not concluded agreements with major suppliers by 2020 Brazil reduces demand due to the devaluation of the real, in Malaysia through the quarantine.

the Russian manufacturers of fertilizers switched to the domestic market, an increase in the 1st quarter of deliveries by 35% to 3 million tons due to early beginning of the sowing season and the desire of farmers to purchase fertilizers at competitive prices in the fall. Thus, the company "FosAgro" increased sales by 50% to 917 thousand tons, "EuroChem" - 24% to 686 thousand tons. in addition to traditional nitrogen fertilizers farmers buy as phosphate and NPK-fertilizer.