People also ask
Why are nitrogen fertilizer prices so high?
Nitrogen fertilizer prices have been high for several months now. In some cases, the price has gone up 50 percent or more, but why is it increasing? The price of nitrogen fertilizers is directly related to the price of natural gas (methane).
What determines global fertilizer prices?
Global fertilizer prices are market-driven, and determined by the balance between supply and demand, underpinned by production costs. Prices also vary with agricultural seasonality and the timing of fertilizer purchases in a year.
What drives fertilizer prices?
In the past few years demand has been the key factor in driving prices as strong crop returns prompted growers to pour on the fertilizer. Supply will eventually catch up with demand, but new fertilizer plants cost a lot of money and come with long lead times.
How much does fertilizer cost in 2020?
Those prices are well off the $350 to $500 range for all three products during this same time in 2020, making it the highest level for the year. While the overarching reason for rising fertilizer prices remains the high price of coal and natural gas, there are other issues affecting the markets.