Fertilizer Market Dashboard

While peak demand for spring application is approaching in the Northern Hemisphere, fertilizer markets are generally characterised by sufficient availabilities. Shipping disruptions in the Red Sea continue to add extra shipping costs.

Overall, global natural gas markets remain well supplied amidst generally high inventories reflecting low winter demand in the Northern hemisphere. However, attacks on energy infrastructure in the Russian Federation edged prices up in Europe. Ammonia markets experienced low volumes of business and stable pricing.

Global nitrogen prices declined month on month due to lower than expected demand. The RCF import tender currently ongoing in India is a significant driver for global nitrogen prices in an otherwise quiet market. It should highlight comfortable availabilities from the main exporting countries. The prospects of returning exports from China should further weigh on prices from May onwards. Prices in the US strengthened in March reflecting final purchases ahead of spring applications.

Until February, the phospho- rus fertilizer market was characterised by tight supplies. In early March, China loosened export restrictions on phosphates, easing the supply situation on the markets east of Suez. As these restrictions have been a major contributor to tighter supplies, it is expected that once exports return significantly in the weeks ahead other price benchmarks will decline.

Nominal prices were up slightly in March in Brazil and transactions were few. On a global scale, potash buying remains relatively limited. In this sluggish global context, the Indian long-term import contract is expected to be priced lower than the previous contract, potentially providing direction to prices in other potash markets.