American fertilizer is expected to emerge from the downturn in the first half of 2024

 Recently, international fertilizer giant EuroChem’s executives said that the long-term downturn in fertilizer prices in the Americas may end in the first half of 2024. Don Lambert, CEO of Eurochem Americas, said the long downturn in global fertilizer prices could end in the Americas in the first half of 2024 as the planting season begins in the United States and Brazil. Lambert said current bottoming prices for products such as potash or nitrogen fertilizer are likely to rise in the first half of 2024, while phosphate prices will remain strong in North America.

After hitting a record high in 2021, global fertilizer prices fell sharply and have remained depressed ever since, according to Lambert. "That may be about to change," says Mr Lambert. We are seeing the price of potash and nitrogen fertilizer stabilize, near the bottom. We expect a rebound in the first and second quarters, especially in the US. In Brazil, we also expect very strong demand in the first half of the year. Overall, we are optimistic about fertilizer prices and will not see a more severe decline than we have seen over the past 12 months."

     Guided by this idea, Eurochem has high hopes for the Serra do Salitre phosphate fertilizer project in Brazil. The company acquired the project from Norwegian fertilizer giant YARA for $410 million in 2021. Gustavo Holbach, Eurochem's head of operations in South America, said the project would ease Brazil's chronic shortage of fertilizer supplies and help the company increase sales in the region.

According to Eurochem, the company has invested more than $1.5 billion in Brazil over the past few years. "Brazil imports about 85 per cent of the fertiliser it consumes," says Mr Holbach. Our investments are more focused on the phosphate fertilizer business, having invested in a new phosphate mine in Serra do Salitre. When the mine is commissioned in March 2024, it will add 1 million tonnes/year of production to the Brazilian market and will help reduce Brazil's dependence on fertilizer imports."

Eurochem is headquartered in Switzerland, but does most of its business in Russia. The company is still under sanctions. People linked to the company were sanctioned by the European Union after the conflict between Russia and Ukraine, but France and other countries have since lifted sanctions against the company. In North America, Eurochem primarily distributes chemicals and does not operate any production facilities. Eurochem has never been sanctioned in North America, Lambert said, and operations in the region have not only continued to operate normally, but have also succeeded in increasing sales and making an increasing contribution to the company's global revenues.

Lambert said: “EuroChem groups and the fertiliser industry are not subject to sanctions. Jurisdictions including the United States, the United Kingdom, Switzerland and the European Union have made it clear that global distribution of fertilizers should not be disrupted or sanctioned. Eurochem's operations in the United States and South America continue to grow significantly, with the Americas now accounting for a significant proportion of the company's tonnage sold. In the Americas, we are operating as normal." However, the company acknowledged that due to the knock-on effects of sanctions imposed by a number of countries, some sectors, such as finance, shipping and insurance services, imposed self-sanctions in violation of established guidelines, which severely affected the company's business.