How will Russia’s invasion of Ukraine affect global fertiliser prices?
Since last week we have already since a lot of volatility in global fertiliser commodity prices, with Urea being the biggest mover.
The pricing and supply uncertainties stem from whether the invasion of Ukraine will lead to further supply disruption and higher energy prices which will be key for the next two months in terms of fertiliser prices. The pricing issues in the near term will be very firm because the replacement values for fertiliser products will be very expensive.
The Numbers – Russia accounts for the following global fertiliser volumes:
- 24% of global ammonia exports in 2020;
- Approx 40% of global ammonium nitrate trade in 2020;
- Approx 13% of global urea trade;
- Approx 17% of total global trade in finished phosphate fertilisers (incl. NPK);
- Approx 20% of world potash trade with Belarus accounting for another 20% of world trade.
