Fertilizer prices scale fresh highs as Russia suspends exports

A bag of fertilizer

Global fertilizer prices increased sharply to record levels, as Russia decided to suspend exports of fertilizers. Russia’s exports are estimated at nearly 14% of global nitrogen fertilizers (urea and ammonia). It is also responsible for 21% of potash and 13% of phosphate fertilizers.

In the last two weeks, Russia was unable to export fertilizers due to the financial sanctions imposed on the country, in addition to disruptions at the Black Sea ports after several shipping firms decided to suspends operations at Russian ports.

On the other hand, Ukraine announced on Saturday, March 12, that it was suspending its fertilizer exports to maintain the balance of local inventory. Ukraine is one of the world’s top urea exporters.

During the week, Norway’s Yara International Co., a major urea producers in Europe, announced the suspension of urea production at its factories in France and Italy due to high prices of natural gas, the feedstock for urea production.

Dealers said that a shipment of urea was sold from the Arabian Gulf countries at $1,000 per ton, which is the highest price ever recorded for the Arabian Gulf exports. Meanwhile, shipments were sold by Egypt and Algeria to Europe at prices ranging between $1,050-1,100 per ton by the end of the week.

Saudi Arabian Mining Co. (Maaden) sold a shipment of ammonia at $1,100 per ton, which is also the highest price ever recorded for the Arabian Gulf exports. Shipments were sold by Libya and Algeria to European markets at $1,150 per ton.

Diammonium Phosphate (DAP) prices exceeded $900 per ton in most regions of the world, including the Arabian Gulf region.