TOPIC PAGE: Fertilizers and the cross-commodity impact of record high gas prices

Author: Deepika Thapliyal

2021/10/21

LONDON (ICIS)--Soaring natural gas prices have prompted shutdowns of fertilizer plants and have wide-ranging implications, not only for industry, but for farmers and global food supply.

European gas prices have skyrocketed to record highs on multi-year low storage levels and supply concerns, with Asian LNG prices following suit.

Natural gas is a key feedstock for making nitrogen fertilizers such as ammonia, urea and nitrates.

Scroll down for expert insight and analysis on the impact of these unprecedented developments on fertilizer markets.

Global Fertilizer Trade Flow Map
ICIS is excited to announce the launch and production of the Global Fertilizer Trade Flow Map, in partnership with the International Fertilizer Association (IFA).

The map provides a geographical picture of the trade flows of fertilizer products between the major producing and importing countries in the world, as well as production and consumption data.

VIDEO: Urea and nitrate prices touch record highs on skyrocketing gas costs

By Deepika Thapliyal 20-Oct-21 LONDON (ICIS) – Watch fertilizer editors Julia Meehan and Deepika Thapliyal discuss the outlook for urea and nitrate prices over the coming months.

VIDEO: ICIS Energy spotlight September 2021 - LNG gas winter
By Kaja Sillett 6-Oct-21 LONDON (ICIS)--LNG editors for the Americas and Europe Ruth Liao and Hal Brown provide a global LNG outlook for the winter, also covering:

• Drivers behind recent surging global LNG prices (00:29)

• Analysis on US LNG supply (3:58)

PODCAST: Soaring energy prices disrupt fertilizer, chemical markets
By Will Beacham 28-Sep-21 BARCELONA (ICIS)--Rocketing oil and gas prices are putting fertilizer and chemical producers under intense pressure while destroying downstream demand.

In this Think Tank podcast Will Beacham interviews Julia Meehan, ICIS managing editor for fertilizers; Nigel Davis, ICIS Insight editor and Paul Hodges, chairman of New Normal Consulting.

LNG VIDEO: Winter demand strategies bolster market
By Hal Brown 4-Oct-21 LONDON (ICIS)--This short outlook video on the LNG market looks at:

• The reasons behind surging European gas and Asian LNG prices
• Northeast Asia's LNG demand strategy for winter
• Impressive growth of LNG imports in the Americas

PODCAST: CF and Yara fertilizer production curtailment sends ripples across global markets
By Sylvia Traganida 21-Sep-21 LONDON (ICIS)-- Prices for all nitrogen fertilizers are moving higher on a daily basis and the demand season has only just started. Some are already above levels seen during the 2007-2008 financial crisis.

The ICIS Fertilizer team gives its view on the current market situation and the impact across the globe.

PODCAST: Soaring gas prices trigger panic for fertilizer producers
By Aura Sabadus 20-Sep-21 LONDON (ICIS)--European natural gas prices resumed their rally on news that Russia’s Gazprom chose not to book additional firm capacity to ship gas via Ukraine in October. The news came at a time when near-record gas prices are sending shockwaves across related industries from fertilizers to food processing, or leading to a chain of bankruptcies in the energy retail sector.

Senior editor Deepika Thapliyal and Richard Ewing, global ammonia market editor join energy journalist Aura Sabadus to discuss the impact of the gas price rally on global ammonia and urea markets.

LATEST NEWS

Fertz giant Yara expects big jump in gas costs despite ammonia curtailments
By Richard Ewing 20-Oct-21 LONDON (ICIS)--Scandinavian fertilizer major Yara on Wednesday confirmed that around 40% of its European ammonia production capacity - some 1.9m tonnes/year - remains curtailed due to a spike in natural gas prices.

INSIGHT: AFPM '21: COVID-19 recovery, policies, tighten oil and gas markets - AFPM CEO
Al Greenwood 18-Oct-21 HOUSTON (ICIS)--The economic recovery from the pandemic, declines in investment in crude output and US policies have combined to cause a mismatch in the supply and demand for oil and natural gas, the head of the American Fuel & Petrochemical Manufacturers (AFPM) said in an interview with ICIS.

BLOG: China provides major climate hope as latest IEA report underlines that it is all about the developing world
By John Richardson 18-Oct-21 SINGAPORE (ICIS)--Click here to see the latest blog post on Asian Chemical Connections by John Richardson.

A lot of the media coverage on the new International Energy Agency (IEA) World Energy Outlook, which was released last week, was so, so parochial as it focused on the links between the study and the energy crisis in the West.

India braces for volatile LNG market outlook
By Joachim Moxon 18-Oct-21 In late September, ICIS reported that Indian Oil Corp (IOC) had bought a spot LNG cargo at around $26/MMBtu. This was about $10/MMBtu higher compared to a month earlier when the same company concluded a previous tender, but the price rally wasn’t over yet. By early October, at the time of writing, ICIS assessments for spot delivery to India were pushing close to $40/MMBtu.

GIF Comment: This year’s global energy crisis may signal that European climate policies are trying to achieve too much too soon
By Katya Zapletnyuk 15-Oct-21 LONDON (ICIS)--Soaring energy prices this autumn have faced politicians and the public with a question:

Are the tight clean energy transition targets compatible with security of supply?

And if not, who is to blame?

Always an easy culprit, fingers were pointed to Russia first.

EU risks losing ferts production permanently if natgas price rises not halted - trade group
By Jonathan Lopez 14-Oct-21 MADRID (ICIS)--Fertilizers production has become so uneconomical in Europe that current curtailed production could be permanently shut if the EU does not take swift action to halt the natural gas price rises, trade group Fertilizers Europe said this week.

Source - Fertilizers Europe

China Customs to start inspections on fertilizer exports from 15 Oct
By Rita Wang 14-Oct-21 SINGAPORE (ICIS)--China’s General Administration of Customs has decided to start export inspections on fertilizer products, adding customs supervision condition “B” to 29 fertilizer products, effective from 15 October 2021.

Agility required to do business in new era of constant volatility - panel
By Adam Yanelli 12-Oct-21 HOUSTON (ICIS)--The companies that evolve into more agile operations with a combination of planning and reaction will be the ones to thrive through the energy transition, according to panellists on the opening day of the Reuters USA Downstream conference.

Ammonia production at CF Fertilisers' Billingham site to run until early 2022
By Richard Ewing 11-Oct-21 LONDON (ICIS)--CF Fertilisers' Billingham complex will operate for several months after the firm reached carbon dioxide (CO2) pricing and offtake deals with industrial gas customers, US parent CF Industries said on Monday.

Source - Shutterstock

European nitrate prices outstrip levels seen in global financial crisis
By Julia Meehan 11-Oct-21 LONDON (ICIS)--The price of ammonium nitrate (AN) and calcium ammonium nitrate (CAN) in Europe have comfortably outstripped levels seen during the global financial crisis following curtailments in production and spurred on by skyrocketing gas costs.