CF(CF) ZACKS·2025-04-14 12:25Core Viewpoint - CF Industries Holdings, Inc. is experiencing gains due to higher nitrogen fertilizer demand and lower natural gas costs, despite facing challenges from soft nitrogen prices [1] Group 1: Demand Factors - Global demand for nitrogen fertilizers is rising, driven by significant agricultural needs and recovering industrial demand post-pandemic [2] - High corn planting acres and low nitrogen inventories in North America are expected to boost nitrogen demand [4] - Brazil's demand for urea is anticipated to remain strong due to increased corn planting, while India's demand is driven by low inventory levels [4] Group 2: Supply and Pricing Dynamics - The global supply-demand balance for nitrogen fertilizers is expected to remain positive, with inventories below normal and production challenges in Europe [3] - CF Industries is facing headwinds from weak nitrogen prices due to increased global supply and lower energy costs, impacting sales and margins [8] Group 3: Cost Structure - The company benefits from lower natural gas prices, with costs decreasing from 2.43 per MMBtu in the fourth quarter [5] - The average natural gas cost for 2024 is projected to decline to 3.67 per MMBtu a year ago, contributing to reduced cost of sales [5][7]