Fertilizer prices in Egypt rose over the last week from 34,000 to 38,000 Egyptian pounds ($650 to $720) per ton, Mohamed Elkheshen, head of the Fertilizer Distributors Association, told Al Manassa.
The hike marks the third increase since the beginning of April. Prices started the month at 23,000 pounds ($440), then jumped to 30,000 pounds ($570), later34,000 pounds ($650), before reaching current levels, Elkheshen told Al Manassa. The increase is attributed to rising domestic gas prices resulting from the US-Israeli war on Iran.
Elkheshen explained that global urea prices jumped from approximately $450 to $830 within a single month, coinciding with an increase in the price of gas supplied to fertilizer plants. He noted that the domestic market is influenced by three primary factors: developments in the Strait of Hormuz, the availability of gas in factories, and the stability of shipping in the Red Sea.
This April, the government increased natural gas flows to fertilizer and petrochemical plants by 17% compared to March, aiming to boost exports and earn hard currency. According to a source familiar with gas distribution at the Egyptian Natural Gas Holding Company (EGAS), flows increased from 620 million cubic feet per day (mcf/d) in March to a current rate of 730 mcf/d, following a relative improvement in gas imports and production.
The source, who requested anonymity, added that this coincided with a cooling of regional tensions, which reflected positively on the relative recovery of Egypt’s gas imports and production.
Fertilizer plants require between 700 and 750 mcf/d to meet export contracts, which increased in value by 12% this year compared to last, reaching $2.803 billion.
