Demand for nitrogen fertilizer will remain elevated for multiple years as high grain prices and challenging weather continue to benefit the industry, CF Industries Holdings Inc. CEO Anthony Will said at Bernstein’s 37th Annual Strategic Decisions Conference, as reported by Bloomberg.
“We’re in really a sweet spot in terms of high demand for our product, low cost for our production, and high prices globally for nitrogen, and that sets up for a couple of years here where we see a really strong operating performance,” said Will.
CF said operating rates are challenged across the industry after COVID-19. Stocks-to-use on fertilizers are also very tight, said Will, while recovery and economic activity are giving the industry another boost. CF estimates it will take at least another two years to replenish coarse grain stocks.