OSTCHEM enterprises reduced the recommended price of nitrate by 12-13%

After the decrease in urea prices, market participants differed in their opinions regarding the further trend of nitrogen fertilizer prices. In Europe, gas prices are rising, so European producers will be forced to raise fertilizer prices. On the other hand, the prices of nitrate were much higher than for other fertilizers, and the demand for it was quite low due to the financial problems of the buyers, who stepped up their purchases of urea after the reduction in its prices. Therefore, some market participants expected a decrease in nitrate fertilizer prices, while for others it came as a surprise, Barva Invest reports in its weekly report.

OSTCHEM enterprises reduced the recommended price for nitrate by 12-13% to UAH 17.4-17.7 thousand/t depending on the delivery conditions, and for lime-ammonium nitrate by 9% to UAH 14.5 thousand/t . Previously, the price was common for all delivery bases, but now it is lower on the terms of CRT in western Ukraine, Odesa, Kherson, Mykolaiv regions and on EXW Rivneazot. Although nitrate prices have been reduced less than urea, buying activity should still increase.

Importers planned to raise fertilizer prices, but OSTCHEM's decision will prevent them from doing so.

Now Polish saltpeter is offered at 17.6-18.3 thousand UAH/t, Saletrosan 26 - at 18.9 thousand UAH/t, FCA cordon/EXW. Bulgarian saltpetre is offered at UAH 18.1-18.6 thousand/t, FCA port. Turkish ammonia and lime-ammonium nitrate are offered at 18-18.2 thousand UAH/t and 16 thousand UAH/t, respectively, FCA port. The price of Georgian saltpeter is UAH 18,600/t, EXW.

Analysts expect that lower prices for saltpeter will significantly increase demand for it. Importers will try to support prices at a high level, which can be helped by fluctuating gas prices.