Nitrogen Fertilizer Prices Stabilize and Strengthen

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Industrial and agricultural chemical company, LSB Industries, has reported that nitrogen fertilizer prices have stabilized and begun to strengthen after experiencing a decline earlier this year.

Positive Price Trends

LSB Industries states, “Nitrogen pricing has stabilized over the last month and has recently begun to strengthen.” The company believes that the current pricing for ammonia and other nitrogen products will be appealing to both retailers and farmers. As the second half of 2023 progresses and the 2024 planting season approaches, an increase in demand for nitrogen fertilizers is anticipated, which will lead to further price rises.

Support from U.S. Corn Market Dynamics

The company expects favorable dynamics in the U.S. corn market to provide support for stronger fertilizer pricing later this year and continuing into the next year.

European Production and Nitrogen Prices

After reducing production for a significant part of 2022, the majority of European ammonia producers have resumed operations in recent months. This has resulted in an increased global supply of nitrogen products. However, natural gas costs in Europe still remain considerably higher compared to the costs in the United States. U.S. ammonia producers, therefore, continue to enjoy a significant cost advantage.

China’s Impact on Global Prices

China’s manufacturing activity has experienced a contraction for the past two years, leading to a decrease in the country’s ammonia consumption. Consequently, global ammonia supply has increased, resulting in weaker prices.

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