(Bloomberg) — Fertilizer prices that had hit records are now plunging as buyers reel from sticker shock.
Most Read from Bloomberg
The June spot price in Tampa, Florida for the nitrogen fertilizer ammonia settled at $1,000 per metric ton, a drop of 30% from May’s $1,425 per metric ton, according to Green Markets, a Bloomberg company.
Demand destruction is part of the decline. Places like Southeast Asia are seeing buyers unwilling to pay the record high prices that were posted in April and May, said Green Markets analyst Alexis Maxwell. It also reflects the declining cost of ammonia production as European natural gas prices fell in the second quarter, she said.
Even with the drop, however, prices are still 87% higher than a year ago, and supply chain issues continue to wreak havoc on global markets.
Read More: Can the World Feed Itself? A Fertilizer Crunch Is Wrecking Crops
(Adds background information in final paragraph.)
Most Read from Bloomberg Businessweek
©2022 Bloomberg L.P.
