Global urea prices dropped back to prewar levels in June, reversing a surge from $492.50 to $900 per metric ton following the closure of the Strait of Hormuz, Nikkei Asia reported on Tuesday.
The decline in fertilizer prices stemmed from lower demand and China's export restrictions, with the Iran-US ceasefire possibly adding to downward price pressure, the report said.
Upside price risk remains due to potential bottlenecks in the opening of the strait, the report cited Argus Media as saying.
The International Fertilizer Association forecasts global exports to reach just above 200 million tons this year, the report said.
The price floor will depend on Chinese policy and European production costs, with full market stabilization possibly taking up to a decade, the report cited analysts as saying.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)