Europe’s fertiliser prices waver as gas costs fall and trade shifts
Fertiliser prices in Europe are shifting as gas costs drop and global trade adjustments take effect. While urea briefly rose in price due to an Indian tender, the increase has already faded. Meanwhile, farmers remain cautious about buying, influenced by low grain prices and the ongoing harvest season.
The cost of producing fertiliser in Europe has fallen as natural gas prices continue to decline. This trend has not yet fully translated into lower local prices, though analysts predict a significant drop in nitrogen fertiliser costs soon.
Urea prices saw a temporary spike after India’s latest procurement tender. However, the premium gained has now disappeared at international trading hubs. Egyptian export ports currently offer urea for August loading at $480 per tonne—a $5 decrease from earlier in the week.
In Germany, prices for key fertilisers remain steady but under pressure. CAN (Ammonnitrat-Harnstoff-Lösung) is priced at €34.00–34.50 per 100 kg, while Diammonphosphat sits at €77.00–77.50 and Potash (Kornkali + Mg) at €31.00–31.50. French markets, though not specifically reported, typically align closely with these figures.
The introduction of import duties on Russian fertilisers is expected to tighten supply further in the coming months. With grain prices staying unprofitable, farmers are delaying purchases, keeping demand weak. This hesitation has led to renewed downward pressure on nitrogen fertiliser prices across several products.
The fertiliser market faces mixed signals—lower gas costs suggest cheaper production, but trade restrictions and weak agricultural demand create uncertainty. Prices for key products like urea and CAN have either stabilised or edged down, reflecting the cautious approach of buyers and sellers alike.
