Fertilizer prices have risen sharply in Europe

2025-01-14 09:29:16
Fertilizer prices have risen sharply in Europe

Fertilizer prices in Europe have seen a sharp increase in January. The reasons for this lie in the situation on the world market, high gas prices, the weakness of the euro, logistics problems and low stocks, agrarheute reports.

 

Extremely high gas prices, sometimes exceeding €50 per MWh, significantly increase the costs of European fertilizer producers, leading to a rapid increase in their cost.

 

Prices are supported by the falling euro, which increases the cost of imported fertilizers. Against this background, all types of nitrogen fertilizers in Germany and other European countries rose sharply in price in early 2025.

 

The increase in nitrogen fertilizer prices is also related to the global increase in the price of urea. In Europe, the situation was further complicated by a significant increase in prices by one of the leading nitrogen fertilizer producers, market participants note.

 

Other types of nitrogen fertilizers are also rising sharply in price. The further situation on the EU market will largely depend on the dynamics of world and European urea prices, traders believe.

 

The urea market has seen a significant upswing after a tender in India held just before the new year. To the surprise of analysts and traders, a record volume of 1.5 million tonnes was purchased in the tender. India is one of the largest importers and buys about 40% of its nitrogen fertilizers on the world market.

 

In German ports, urea prices rose to €525/t in early January, up €75/t from the end of December (€450/t). The sharp price increase could significantly reduce sales, which would likely require a review of pricing policy.

 

At the end of December, the fertilizer industry and importers had already raised prices for ammonium calcium nitrate to their highest annual level. However, they rose again significantly at the beginning of 2025. The price is now just under €370/t at import ports and wholesale markets, which is €23/t higher than at the end of December.

 

In Germany, prices for liquid fertilizers, such as ammonium nitrate-urea solution (ANC), have also increased, with the price now reaching €311/t, up €12/t from the end of December.

Visitors’ comments (0):