Nitrogen cheapest in years, but low might be in – The Western Producer

Nitrogen fertilizer prices have bottomed out, according to one of the world’s largest manufacturers.Jochen Tilk, president of PotashCorp, told investment analysts during the company’s second quarter earnings conference call that a low point in the market has been reached.He said the “challenging price environment” will continue to weigh on PotashCorp margins for the balance of 2017 and then there will be a turnaround.“We anticipate market conditions will begin to improve in 2018 as capacity additions decline, high-cost capacity is rationalized and trade flows adjust,” said Tilk.He said ammonia prices are below the cost of production for a lot of manufacturers.“You have to assume it’s the low point because it’s not sustainable,” said Tilk.

Source: Nitrogen cheapest in years, but low might be in – The Western Producer