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

Deepika Thapliyal

01-Dec-2021

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.

Unabated strength of urea and ammonia markets set to continue
by ICIS – chemical podcasts 17-Nov-21 LONDON (ICIS) –Across the global urea and ammonia markets, there is no end in sight for a downward price correction since market fundamentals look set to remain firmly in place moving into 2022. Stocks are low, demand is high and production costs are forcing unwelcome curtailments across the world.

Natural gas remains the key driver for the fertilizer sector, but there are plenty of other factors impacting urea and ammonia. Tune into our industry experts Julia Meehan, Deepika Thapliyal and Richard Ewing to get an up-to-the-minute overview of these key fast-moving global fertilizers.

VIDEO: ICIS Energy Spotlight November 2021 – Gas-to-coal switching
By Sebastian Rilling 15-Nov-21 LONDON (ICIS)–EU carbon market analyst Sebastian Rilling and energy market reporter Daisy De Selliers look into:

-How carbon trading has influenced gas to coal switching (00:32)
-The impact seen across mainland European countries (2:52)
-Why the UK has been an exception to the trend (4:25)

PODCAST: Phosphates firms amid high sulphur and phosphoric acid prices
By Sylvia Traganida 05-Nov-21 LONDON (ICIS)–Phosphates pricing sentiment remains bullish, amid record high sulphur and phosphoric acid prices. The announcement of fertilizer export restrictions from Russia is seen tightening global phosphates availability.

Senior Editors Sylvia Traganida and Erica Sesay discuss the latest developments in the phosphates and sulphur markets.

VIDEO: Skyrocketing gas prices to impact oil market during winter
By Ajay Parmar 02-Nov-21 15:17 LONDON (ICIS)–Senior analyst Ajay Parmar outlines the key factors affecting the oil market throughout the rest of this year and early 2022.

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.

LATEST NEWS

India fiscal Q2 GDP growth slows to 8.4%; eyes huge fertilizer subsidy
By Priya Jestin 1-Dec-21 MUMBAI (ICIS)–India’s economic growth in the fiscal second quarter ending September 2021 decelerated to an annualized rate of 8.4% from the previous three months, but represented a strong recovery from the steep contraction in the same period last year amid a pandemic-induced nationwide lockdown.

Source – Shutterstock

US DOC issues affirmative determinations that UAN imports are unfairly subsidised
By Mark Milam 30-Nov-21 HOUSTON (ICIS)–The US Department of Commerce (DOC) has made affirmative preliminary determinations that urea ammonium nitrate (UAN) imports from Russia are unfairly subsidised at rates ranging from 9.66% to 9.84% and UAN imports from Trinidad and Tobago are unfairly subsidised at a rate of 1.83%.

Eurozone inflation hits new high in November as energy costs remain at record levels
By Graeme Paterson 30-Nov-21 LONDON (ICIS)–Annual inflation in the eurozone accelerated to a fresh high in November, driven by surging energy prices which have significantly impacted the chemicals industry.

BLOG: OPEC faces difficult decisions on output as pandemic hits again
By ICIS Editorial 29-Nov-21 LONDON (ICIS)–Click here to see the latest blog post on Chemicals & The Economy by Paul Hodges, which looks at the resurgence of the pandemic after the Omicron variant was detected last week.

This had and is to have an impact in crude oil markets, with prices crashing last week, which will force producing cartel OPEC to face difficult decisions regarding its output.

Russia halts customs clearance of fertilizer cargoes until 1 December
By Deepika Thapliyal 26-Nov-21 LONDON (ICIS –In Russia, fertilizer producers have been informed that no cargoes will be cleared by customs until 1 December, several producers confirmed on Friday.

INSIGHT: Bullish sentiment persists throughout global fertilizer markets
By Richard Ewing 26-Nov-21 LONDON (ICIS)–Heading into the final few weeks of 2021, fertilizer prices remain stable to firm as attention turns to securing supplies for early 2022 business amid political and economic uncertainty in key regions.

INSIGHT: Unsettling market conditions have potential to impact US fertilizer and agriculture industries
By Mark Milam 15-Nov-21 HOUSTON (ICIS)–Like a cotton grower watching dark skies accumulating just as their field of white bolls are prying open, bringing the threat of unavoidable loss, the domestic US fertilizer market is seeing unsettling conditions that have been steadily gathering on the horizon.

US President Joe Biden signs $1tr infrastructure bill into law
By Janet Miranda 15-Nov-21 HOUSTON (ICIS)–US President Joe Biden signed into law on Monday the $1tr bipartisan infrastructure bill which aims to invest in long overdue improvements to the nation’s ports, airports, rail, and roads, along with tackling climate change and expanding broadband.

China boosts gas storage plans ahead of winter, eyes Beijing Olympics
By Yueyi Yang 16-Nov-21 SINGAPORE (ICIS)–China has increased operations at gas storage facilities to bolster supplies for the winter, the country’s state planner NDRC said on 16 November, ahead of what could be a challenging supply and demand seasonal balance.

Russian supply rises as Gazprom targets EU stores
By Thomas Rodgers 15-Nov-21 LONDON (ICIS)–Russian pipeline supply to Europe increased on 9 November, a day later than initially expected as exporter said Gazprom it would begin prioritising its European injection campaign.

However, limited physical refilling and pipeline capacity bookings have raised doubts about how significant and long-lasting the uptick could be.

Logistics issues could derail UAN market in Q4
By Sylvia Traganida 12-Nov-21 LONDON (ICIS)–Market players are worried that logistical problems could affect the urea ammonium nitrate (UAN) market in Europe in the fourth quarter.

At the moment there is a shortage of storage tanks in Rouen, France, because of the late arrival of cargoes.

Ammonia remains bullish amid European production curtailments
By Richard Ewing 05-Nov-21 15:45 LONDON (ICIS)–Bullish sentiment in the international ammonia market shows no sign of abating amid significant European capacity curtailments and limited export availability in the Black Sea due to low pipeline pumping rates.

Russian coal supply to Ukraine halts amid deepening energy crisis

By Aura Sabadus 01-Nov-21 16:40 LONDON (ICIS)–Ukraine is pinning its hope on nuclear generation to meet winter demand as the country stopped receiving coal supply from Russia on Monday, according to the country’s energy committee.

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