Prices on a monthly basis reached $416.57 per ton in June, compared to $270.83 per ton previously.
Fertilizer prices on the Egyptian open market rose by about 54 percent on a monthly basis in June, reaching 20,000 Egyptian pounds per ton ($416.57), compared to 13,000 Egyptian pounds ($270.83) per ton previously, according to a government official and six sources familiar with the matter. The command.
Factors contributing to high prices
The rise in fertilizer prices in the country is due to the decline in domestically produced natural gas, which has greatly affected factory operations and led to the inability to meet the increasing demand for fertilizer for summer crops, said four heads of fertilizer production companies. .
The need for liquefied natural gas imports
Meanwhile, the government official cited Egypt’s need to import liquefied natural gas to operate fertilizer plants as a contributing factor to the rise in prices. This was further exacerbated by the rise in the exchange rate of the US dollar against the Egyptian pound, which led to increased production input costs.
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Production stopped at the major fertilizer company
In light of these developments, on June 25, Abu Qir Fertilizers The Chemical Industries Company (ABUK) halts operations at its three plants due to the interruption of natural gas supplies.
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