LSB Industries Seeing Nitrogen Fertilizer Prices Beginning to Strengthen

By Stephen Nakrosis

Industrial and agricultural chemical company LSB Industries said nitrogen fertilizer prices have recently stabilized and begun to strengthen after falling earlier in the year.

On current price trends:

"Nitrogen pricing has stabilized over the last month and has recently begun to strengthen," the copmany said. "We believe that current pricing for ammonia and other nitrogen products should prove attractive to retailers and farmers such that, as the second half of 2023 progresses and as the 2024 planting season approaches, demand for nitrogen fertilizers should increase to a degree that pricing will continue to rise from current levels."

The company also said it expects "favorable U.S. corn market dynamics to provide support for stronger fertilizer pricing later this year and into next year.

On European production and prices for nitrogen:

"After curtailing production for much of 2022, the vast majority of European ammonia producers have resumed operations in recent months, resulting in an increased global supply of nitrogen products. Still, natural gas costs in Europe remain significantly higher than those in the U.S. and U.S. ammonia producers continue to see a significant cost advantage."

On China's effect on global prices:

"China's manufacturing activity has contracted for much of the past two years resulting in a reduction of the country's ammonia consumption and contributing to greater global ammonia supply and weaker prices."

Write to Stephen Nakrosis at [email protected]

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