Record prices for natural gas led to a sharp increase in prices for mineral fertilizers
Natural gas price increase to 9 900 / m3 as a result of the reduction in supplies to Europe, Gazprom has increased pressure on European producers. According to analysts ' forecasts, gas prices will remain high until the end of the heating season, given the low gas reserves in European storage facilities.
Due to high prices for gas, which is the main raw material for the production of ammonia, several mineral fertilizers plants in Europe have reduced production or temporarily stopped working. At the same time, large fertilizer producers continue to produce in other regions or receive ammonia from third countries. Producers raise fertilizer prices to shift costs to consumers.
Farmers will also suffer from a shortage of fertilizers and rising prices, which will lead to an increase in the cost of next season's harvest. Companies that produce meat and carbonated beverages are also deficient in CO2, which is a byproduct of ammonia production.
In Ukraine, natural gas prices for industrial consumers have increased to 20000-25000 thousand UAH per 1 thousand m3 this also led to an increase in prices for fertilizers and grain elevators for drying agricultural products.
Since the beginning of the year, the price of natural gas has almost tripled, and its cost is up to 80% of the cost of nitrogen fertilizers, which are a significant item of expenditure for agricultural enterprises. Ammonium nitrate has risen in price from 10-11 thousand UAH/ton to 15-16 thousand UAH/ton, so farmers will reduce the use of fertilizers, since the additional effect of their use does not compensate for the cost of their purchase.
According to analysts ' forecasts, starting from October, some Ukrainian plants that produce fertilizers will either reduce production volumes to a minimum, or stop so as not to produce expensive products that will be unrealistic to sell.
