According to the press release, Grupa Azoty has completed work on contracts in the Agro area for the 2024/2025 season. In total, the Group concluded 66 agreements with an authorized distribution network for the domestic market. In the case of the foreign market, a significant part of sales is based on short-term contracts, while part of the cooperation is carried out under framework contracts.
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President of Grupa Azoty: We already have fertilizer price lists
Fertilizer prices in 2024
– An intense period of negotiations is behind us – both with partners in the country and on the foreign market. Before starting the talks, it was necessary to analyze individual markets and define the Group's goals, taking into account the current and forecast situation in the fertilizer industry. We held a number of meetings, including: with the authorized distribution network of our fertilizers, during which we indicated specific assumptions for further cooperation. When it comes to price lists, we must be aware that prices are influenced primarily by global trends in the fertilizer market, which is why we monitor the most important indicators on an ongoing basis, says Hubert Kamola, vice-president of the management board of Grupa Azoty SA responsible for the Agro area, president of the management board of Grupa Azoty Puławy.
And it gives an outlook for the coming weeks on the fertilizer market. Will it be more expensive?
According to Grupa Azoty, the market is currently characterized by stable prices of urea and ammonium phosphate (DAP), which contributes to the increase in fertilizer prices in Europe. Also, the situation in Egypt, caused by reduced availability of gas supplies to urea factories, implies a rebound in urea prices globally. Further tenders confirming interest in urea are being observed in India, and Latin and South America are also active.
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In Egypt, fertilizer factories were closed due to the heat
Gas and ETS costs and fertilizer imports from the East
Grupa Azoty also points out that one of the key factors that influences the final price of nitrogen fertilizers is the cost of gas.
– For example, in the USA the gas price is $2.65/Mmbtu, in Russia it is $2.66/Mmbtu, while in Europe on TTF it is as much as $10.81/Mmbtu. In addition, there are the costs of ETS, i.e. as much as EUR 67/t with further potential for increases. In this aspect, an important mechanism will be the introduction of a carbon tax for importers of specific products from January 1, 2026. The goal is to eliminate the discrepancies between EU producers who comply with the provisions of the climate policy and those who produce their products outside the EU – we read in the announcement.
– One of the biggest challenges for producers in the European Union is the import of fertilizers from the East. As the entire Azoty Group, we emphasize the need to introduce appropriate protective tools for the fertilizer market in the context of imports from Russia and Belarus. The costs of gas, ETS, but also excessive imports mean that the entire fertilizer sector in the EU is now under incredible cost pressure – the effects may be irreversible in the future. Everyone, including representatives of European agriculture, must be aware of this. In addition, there are issues related to the energy transformation and the costs necessary for its implementation. We understand the need to reduce emissions by modernizing our production lines and want to implement these actions, but importing CO2 to Europe is a contradiction of this effort. All this means that, as Grupa Azoty, we are actively involved and present our position in the context of actions and decisions that are necessary to maintain the competitiveness of the industry. In this context, understanding the import problem both at the national administration level and at the EU level is a great support for us – adds Hubert Kamola.
