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Updated to Q2 2020
Europe is expected to be well-stocked in Q2, as most producers are looking to conclude business in the continent. Particularly, Russian and north African producers are focusing on Europe as it is the main buying season and major demand is lacking elsewhere. Also, business in Europe is expected to give favourable netbacks to producers. However, there is a fear that logistics and transportation may be disrupted in Europe due to the lockdown in many countries.
European buyers are expected to return to the market in Q2, as requirements for spring are not fully covered. Since they have not bought enough in 2019 due to adverse weather, demand is expected to be high in the continent. However, this will all depend on the coronavirus-related lockdowns in many countries and how long they will last. Farmers are still in the fields however, and they will need to make purchases for this season.
Although there was limited movement of product during the last quarter because of weather and logistical issues, along with some reduction in output due to the pandemic lockdowns, this should ease as conditions improve. Given the anticipated advancement of the crops, whose acreage should significantly increase, supply levels are expected to rise to meet the new demand as inputs increases.
With the size of the 2020 acreage anticipated to be much larger, the demand projections are building for a robust period of fertilizer consumption, especially if some of the economic impasses present in the prior quarter stabilise. Demand will also be supported further if there is favourable weather that comes forth just as the crops reach the secondary application period.
Phosphate fertilizers news and market information products from ICIS
We offer the following regional Phosphate fertilizers analysis and news coverage to keep you informed of factors and developments affecting prices in the Europe & US Phosphate fertilizers marketplace.
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