Europe's Nitrogen Shutdown Risk Puts North Africa in Play

Fertilizer prices face fresh pressure as high European natural gas costs push aging nitrogen plants toward shutdowns that could last all winter. Josh Linville, StoneX VP of Fertilizer, explains why European nitrogen producers hesitate to shut down, where Europe would turn for supply, and what an Iran peace deal means for the Strait of Hormuz. Nitrogen fertilizer production depends on natural gas, and European plants are costly to stop and difficult to restart in the middle of winter. A shutdown would likely keep a plant offline until spring, so operators are watching closely rather than acting. If European output falls, buyers would turn to North African suppliers in Algeria and Egypt, adding competition for tons that the U.S. and Canada also source there. Even with an Iran peace deal and a reopened Strait of Hormuz, Persian Gulf port loading capacity limits how fast nitrogen, phosphate and sulfur supply returns to the market. 00:00 - Gas Squeeze Hits Nitrogen 01:08 - Plants Can't Just Switch Off 01:58 - Europe Turns to North Africa 03:55 - Midterms Meet the Strait 06:09 - Hormuz Reopens, Ports Choke 07:03 - Fertilizer Prices After a Deal 09:31 - Spring Still Hurts Discover Actionable Fertilizer Insights with StoneX Market Intelligence: https://shop.stonex.com/collections/fertilizers?utm_source=youtube&utm_medium=social&utm_campaign=sxtv_guest_josh_linville&utm_content=share Like and subscribe for more financial market insights. #Fertilizer #StoneX #JoshLinville #StraitOfHormuz --------- Like this video? Subscribe and turn on notifications so you don't miss any videos from StoneX: https://www.youtube.com/@stonex_official Visit https://www.stonex.com/en/insights/thought-leadership/?utm_source=youtube&utm_medium=social for insights, perspectives and thought leadership from StoneX's global network of experts. Visit our website: https://www.stonex.com?utm_source=youtube&utm_medium=social