The fertilizer market turned upside down, 1 million tons of nitrogen fertilizer fell out of supply

By: Trademagazin Date: 2022. 08. 29. 10:33

🎧 Hallgasd a cikket: Nyelv: Sebesség: 1.05×

According to industry analysts, around 1 million tons of nitrogen fertilizer have fallen out of supply in the region so far this year, although there are opinions that speak of an even greater shortage. This amount was simply not produced by the factories, because they partially or completely ceased operations – reports Agroinform.

European fertilizer factories are coming to a standstill

If we only look at the production of Nitrogénművek Zrt., which serves approximately 70 percent of the Hungarian market: until now, the amount of ammonia produced (from which fertilizer is made) has been between 70 and 120 thousand tons per quarter. In the second quarter of 2022, this figure was 28 thousand tons (106 thousand tons in the second quarter of 2020).

By the way, the factory stopped in mid-March, and then restarted after a month. According to the latest news published on Bloomberg, Nitrogénművek has now joined the European producers reducing or stopping emissions due to rapidly rising gas prices, ammonia production has been suspended since August 1.

According to the company’s statement, production may resume in October, but if gas prices continue to rise, even this is doubtful. The prices will be around 1,000 euros/ton, but the level of 1,500 euros is also unthinkable.

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