Wedoany.com Report on Feb 3rd, Significant price movements have recently occurred in the global fertilizer market, with urea prices rising by $20 per ton within a week. Market analysts believe that robust demand in the Asian region, coupled with relatively tight supply, has jointly driven this round of nitrogen fertilizer price increases ahead of the spring planting season.

A key market signal came from the tender results of QatarEnergy. The company sold a 45,000-ton shipment of granular urea at $410 per ton (FOB), scheduled for delivery in February. This price represents a significant increase compared to transactions a week ago, reflecting the current tightening of global fertilizer supply.

This round of demand is primarily driven by countries like India and Australia, which are actively procuring from the Middle East and regions east of the Suez Canal. As a result, the European market is facing supply pressure, and the landed cost of urea in Southeast Asia has approached $415 per ton, raising concerns among local agricultural producers about rising costs.

Against this backdrop, there are reports that the European Commission is considering temporarily removing import duties on fertilizer products such as ammonia and urea. This proposal aims to alleviate pressure on the agricultural sector by increasing supply and reducing costs. Currently, European agriculture already faces high energy and carbon emission costs.

Industry analysts point out that even with tariff adjustments, it may be difficult to completely stabilize the market. If strong demand in Asia persists and global supply fails to increase effectively, fertilizer prices may remain elevated, potentially driving up agricultural production costs and impacting future food prices.