In September, prices of Ammonia, the primary source of nitrogen fertilizer in the US, surged. European Natural Gas prices have risen swiftly, forcing factories to shut down and increasing reliance on US fertilizers. In contrast to US natural gas prices, which have stayed consistent over the past 12 months, Europe's energy costs have recently climbed. Ammonia costs have risen in the US market. Anhydrous Ammonia's price for the FOB New Orleans market has climbed significantly and is now at USD 1393 per metric tonne.

The weekly price of fertilizers in North America increased by over 11% on Thursday, the highest since March, as several European factories are forced to shut down or reduce production due to a lack of electricity. The most general nitrogen fertilizer, Ammonia, had a price increase of over 24% in the American Corn Belt.

Natural gas prices in the US have risen to their highest point in 14 years. Additionally, there are delays for cargo leaving the US for other countries. According to Eastman, it is increasing its selling prices and reducing expenses.

As per the ChemAnalyst analysis, a wave of European Ammonia closures last week caused Nitrogen prices to rise. More than two-thirds of European Ammonia production, which depends on expensive inputs like natural gas, is still not running.

As the crisis in Ukraine disrupts critical grain shipments from the Black Sea, one of the world's breadbaskets, and rattles commodity markets, the globe is turning more and more to the United States for supplies, which has caused an increase in American farming prices.

According to ChemAnalyst, as inflation spreads through nations and natural gas price levels rise, fertilizer prices worldwide are expected to soar high on record. By Q4, Farmers will need to adjust crop budgets since the cost of nitrogen fertilizers is expected to stay higher for longer as the manufacturing of Ammonia is slowed down by the high price of natural gas.