“The events that happened earlier in the year got even more people talking about how the fertilizers market is about to bottom out: these include first of all the drought in India and the economic collapse in Brazil,” said the Deputy Head of the Department for Expert Analysis Daniil Nametkin in an interview for RBC-TV. The expert believes it is the recovery of demand in the main importing nations that will determine further market trends.
Everyone is expecting the global market of fertilizers to bottom out
The large stocks of fertilizers at Chinese ports that are even allowing Chinese exporters to dump a little are also putting a serious downward pressure on the market. In the Baltic Basin countries, the prices for fertilizers have already gone down by 20-25%. “Our estimates suggest that closer to the end of the year, before the start of the big sowing season, the European and African markets of fertilizers should start to recover,” Mr. Nametkin prognosticates. Answering a question from the correspondent, the expert stressed that all market players expect to see a recovery in Latin America, first of all in Brazil and Argentina and later in India.
The largest glut of fertilizers is in potassium and phosphorus based fertilizers while in the market of nitrogen based fertilizers the situation is more stable, the expert noted.