(Bloomberg) -- Prices for a widely used nitrogen fertilizer fell the most in three years in a break in what has been a scorching rally.
A gauge of prices for the nitrogen fertilizer ammonia in Tampa fell more than 12% Friday, the most since 2019, as high prices have slowed industrial demand with buyers in Southeast Asia pulling back on contracted volumes, said Alexis Maxwell, an analyst at Bloomberg's Green Markets. In addition, some halted ammonia production in Europe has restarted, which could ease some market tightness.
While the rally “appears to be taking a breather” in the second quarter as fertilizer demand shifts from the Northern Hemisphere to the Southern Hemisphere, “we expect that continued volatility in European natural gas prices will support relatively high nitrogen pricing through the end of the year,” Maxwell added.
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