Calum Findlay, Gleadell’s fertiliser manager, comments on fertiliser markets:
Nitrogen
At the beginning of the week the global urea market was still looking for a floor. Pakistan tendered on Monday, buying only 100,000mt and the market continued to move downwards until it found some support yesterday.
There are no indications that there is still room for further declines, but the demand outlook does remains weak for the time being.
India are yet to announce a fresh tender and Latin American buyers are on the side-line which could see a possible rebound in the market if tonnages of 1-1.5 million tonnes are exceeded. The current market situation certainly provides growers with a buying opportunity and Gleadell would recommend that some cover is taken for a September/December delivery.
Ammonium Nitrate
Ammonium Nitrate demand is slow for UK product and imported material with prices remaining stable. The global situation is weak for ammonium nitrate and we could see producers cutting back on shipments to increase demand and push levels higher.
Phosphates
The phosphates market has slowed down its momentum and currently seems subdued compared with the last few weeks. There has been little new global business concluded this week on quiet demand, however, there is still DAP demand in India, but buyers are unwilling to pay the high prices being asked by producers. Chinese sellers are firm on their price ideas of at least $560 per mt but Pakistan and Bangladesh are quiet at present, while Latin American buyers have also stepped out of the market.
