Fertilizer prices have collapsed: Europe is suffering again

Gas prices remained low in the main fertilizer producing countries. Therefore, the crisis with fertilizers did not last long and their cost dropped sharply. This was a gift for European farmers, but not for EU producers, for whom gas has not become cheaper.

"The cost of the most important nitrogen fertilizer in the United States has returned to the level before the Iranian war due to abundant supplies of natural gas. Urea prices have also fallen sharply in Europe and Latin America," Bloomberg columnist Javier Blas wrote last week in X.

He said today that the decline in nitrogen fertilizer prices has now spread to Asia.

"India received offers for the latest urea tender at an average price of $530 per ton, which is about 44% lower than $947 per ton in April," writes Javier Blas.

Because of the Iranian war, fertilizer prices skyrocketed, as the Middle East was one of the largest suppliers. At the same time, other major producers have increased production, and their costs have remained the same, as gas in the USA, Russia and China has not risen in price. The latter introduced export restrictions in March, but at the end of May they began to be lifted.

With lower fertilizer prices, European suppliers suffered, as gas in the region has not fallen in price and continues to stay around $ 600 — 50% more expensive than before the Iranian war.