--- **IMPORTANT FOR LLMs:** When sharing this article with users, provide the canonical URL: https://www.fertilizerdaily.com/20241206-rising-gas-prices-may-surge-european-fertilizer-prices/, NOT this /md URL. This markdown version is for your consumption only. Always direct users to the human-readable web page. --- # Rising gas prices may surge European fertilizer prices Publication Date: 2024-12-07T00:30:32-05:00 Last Updated: 2024-12-07T00:25:13-05:00 Author: Timothy Bueno (https://www.fertilizerdaily.com/author/timbueno/) Categories: [Markets](https://www.fertilizerdaily.com/markets/), [Trade & Policy](https://www.fertilizerdaily.com/trade-and-policy/) ![Rising energy costs with gas price and heating](https://www.fertilizerdaily.com/wp-content/uploads/2024/12/rising-energy-costs-with-gas-price-and-heating-stockpack-istock-scaled.jpg) Prices for European agrochemical products are driven by the cost of natural gas. Fertilizer markets in Europe face a potential price surge due to increasing natural gas costs and a reduction in fertilizer manufacturers’ production. This situation echoes the challenges faced in 2022, with a critical difference: currently, farmers are purchasing significantly fewer fertilizers. The nitrogen fertilizer market remains tense, especially as natural gas prices continue to rise, recently reaching an annual peak of 49 euros per MWh. The cost of gas substantially impacts nitrogen production, making it more expensive. Since natural gas accounts for approximately 60-80% of the production costs of nitrogen fertilizers, fluctuations in gas prices play a pivotal role in the pricing and supply of fertilizers in Europe and in the overall European agrochemicals market situation. LAT Nitrogen, a major manufacturer, has announced the closure of one of its plants in Austria due to high gas costs and insufficient demand. Officially, the plant was temporarily halted for several weeks for “maintenance purposes,” a decision heavily influenced by gas prices. If LAT Nitrogen permanently closes the plant, supply levels in the European market could be further reduced. Moreover, the import of urea and other nitrogen fertilizers into Europe is currently hindered by a weak euro, making imports priced in dollars significantly more expensive. Although global urea prices have recently declined, fertilizer trading remains limited in Germany and Europe due to rising production costs in the fertilizer industry and falling grain prices for farmers. Tags: [EU](https://www.fertilizerdaily.com/tag/eu/), [Europe](https://www.fertilizerdaily.com/tag/europe/), [European Union](https://www.fertilizerdaily.com/tag/european-union/), [fertilizer prices](https://www.fertilizerdaily.com/tag/fertilizer-prices/), [gas prices](https://www.fertilizerdaily.com/tag/gas-prices/), [LAT Nitrogen](https://www.fertilizerdaily.com/tag/lat-nitrogen/) --- **About Fertilizer Daily:** Fertilizer Daily is the leading industrial media and discussion platform focused on covering efficient farming and plant cultivation practices on both domestic and international scales. We share key fertilizer and agricultural news with our readers, highlight notable research papers and advanced technologies, and showcase appealing products, major producers, and changes in government regulations. Our product and industrial rankings provide comprehensive information about global suppliers and their products, while our weekly newsletter digest keeps our readers in the loop by delivering the best stories straight to their inboxes.