Ammonia prices are not expected to fall according to EuroChem
EuroChem forecasts that in the second half of 2021 the situation on the global nitrogen fertilizer market will remain favorable, driven by strong demand and low inventory levels.
“The global demand for carbamide is expected to remain stable due to the strong economic performance of agricultural producers. Particularly, demand from India and Brazil will contribute to maintaining the price level,” the company’s press-release says.
At the same time, limited export from China will keep a balanced deficit position in the global market. The possible introduction of an export tax in China may lead to a further limitation of the world market’s capacity.
Until 2022, it’s expected to have high natural gas costs, which will further support ammonia prices.