Nitrogen market in Hungary

Earlier Report Observations

The Hungarian nitrogen market volume grew from 361.8 million m³ in 2018 to 393.7 million m³ in 2019, driven by major capacity expansions and production technology investments at Nitrogénművek Zrt., which aimed to meet rising market needs. The company also introduced new business offers emphasizing customer independence, increasing market liquidity and the number of input material traders. However, in 2020, market volume fell to 342.9 million m³, even as industrial nitrogen demand remained robust during the COVID-19 pandemic.

From 2021, the market was reshaped by the Ukraine war, which doubled natural gas prices and forced Nitrogénművek to repeatedly halt production, as high gas costs eroded demand for expensive fertilizers. EU protective import duties and geopolitical tensions became price-driving factors, pushing the market value from 56.5 million USD in 2021 to 70.0 million USD in 2022, despite only a modest physical volume increase to 391.0 million m³. Concurrently, regulatory changes allowed higher maximum nitrogen application rates on nitrate-sensitive land, supporting agricultural consumption.

In 2023–2024, prices stayed elevated due to logistical bottlenecks like low Danube water levels and reduced Russian and Belarusian imports. The share of inhibitor-treated urea more than doubled, reaching 16.3% of urea sales in 2023, reflecting a shift toward more efficient products. The EU Green Deal's goals encouraged reduced fertilizer use, but shortened fertilizer ban periods on nitrate-sensitive areas and increased nitrogen allowances for several crops under new nitrate rules provided a more favorable regulatory environment for farmers.

Production nitrogen in Hungary

In value, 2018-2021, K $ US

In Hungary, nitrogen production reached a value of 51 989 thousand US dollars in 2021, representing a 16.0% increase compared to the previous year. Over the period from 2018 to 2021, production grew by 24.7%, which translates to an average annual growth rate of 7.6%. The smallest change occurred in 2020, with production remaining essentially flat.

Annual dynamics of production in Hungary in value, 2018-2021, K $ US

In kind, 2018-2021, M m³

Hungary produced 343.7 million cubic meters of nitrogen in 2021, marking a 6.0% year-over-year increase. From 2018 to 2021, production rose by 5.7%, with a compound annual growth rate of 1.9%. The lowest production level was recorded in 2020 at 324.3 million cubic meters, while the peak was in 2019 at 365.2 million cubic meters. The most significant decrease occurred in 2020, with a drop of 11.2%, whereas the largest increase was in 2019, with a rise of 12.3%.

Annual dynamics of production in Hungary in kind, 2018-2021, M m³

Exports nitrogen from Hungary

Exports in kind, K m³

In 2021, Hungary's nitrogen exports totaled 8 630 thousand cubic meters, showing a modest increase of 1.4% from 2020. The lowest export volume was in 2020 at 8 508 thousand cubic meters, and the highest was in 2019 at 9 053 thousand cubic meters. The most substantial decline took place in 2020, with a decrease of 6.0%, while the largest increase occurred in 2019, with a growth of 4.0%.

Annual dynamics of product's exports from Hungary in kind, 2018-2021, K m³

Between 2018 and 2021, Slovakia dominated Hungary's nitrogen exports in kind, accounting for 82.6% of the total flows, with the remaining share distributed among a variety of other markets.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Hungary in kind, 2018-2021

Exports in value, K $ US

In 2021, the value of nitrogen exports from Hungary reached 1 168 thousand US dollars, reflecting a strong year-over-year increase of 23.0%. From 2018 to 2021, export values grew by 17.1%, with a compound annual growth rate of 5.4%. The lowest value was recorded in 2020 at 949 thousand US dollars, and the most significant decline occurred that same year, with a drop of 15.8%.

Annual dynamics of product's exports from Hungary in value, 2018-2021, K $ US

From 2018 to 2021, the main buyers of Hungarian nitrogen in value terms were Slovakia, with 65.3% of exports, Romania, with 8.0%, and Brazil, with 4.9%. Together, these three countries accounted for 78.1% of total export value.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Hungary in value, 2018-2021

Imports nitrogen to Hungary

Imports in kind, K m³

The market for nitrogen imports in Hungary experienced notable fluctuations during the period. The lowest import volume was in 2020 at 27 054 thousand cubic meters, while the peak was in 2021 at 50 165 thousand cubic meters, representing a dramatic increase of 85.4% from the previous year. The volume varied by a factor of 1.9 between these years. The most significant decline occurred in 2020, with a decrease of 28.1%.

Annual dynamics of product's imports to Hungary in kind, 2018-2021, K m³

Throughout 2018 to 2021, Austria was the leading source for Hungary's nitrogen imports in kind, holding a 70.8% share of total flows, with other markets making up the remainder.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Hungary in kind, 2018-2021

Imports in value, K $ US

The import market for nitrogen in Hungary showed volatility over the observed period. The lowest value was recorded in 2020 at 2 832 thousand US dollars, while the peak was in 2021 at 5 682 thousand US dollars, marking a dramatic rise of 100.7% compared to 2020. The value varied by a factor of 2 between these years. The largest decline occurred in 2020, with a decrease of 31.4%.

Annual dynamics of product's imports to Hungary in value, 2018-2021, K $ US

From 2018 to 2021, the principal suppliers of nitrogen to Hungary in value terms were Austria, with 64.6% of imports, Slovenia, with 10.0%, and Czechia, with 8.8%. Collectively, these three countries accounted for 83.4% of total import value.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Hungary in value, 2018-2021