Calum Findlay, Gleadell’s Fertiliser Manager, comments on the fertiliser markets
Granular Urea
Continuing unrest in Egypt is making many UK importers and merchants nervous and the situation could be potentially explosive to pricing within the EU market, which is heavily reliant on this area for supply.
Granular urea had been trading below replacement values until this week, but Egypt’s move to a partial military solution for the short/medium term has already pushed prices higher.
The Egyptian protests have created roadblocks for the transport of urea into ports and, with no gas available for production, this is interrupting exports.
Prilled Urea
The prilled urea market has remained quiet and generally static until recently. This week prill values have been underpinned by physical trades and the market has firmed $15–20/t. This increase could mark a more prolonged trend as demand outstrips supply. Some traders now think we have seen the bottom of the market.
Ammonium nitrate
AN prices continue to increase for both UK and imported material. Demand has slowed as a result, but it is important to note that current UK values are still below replacement from European producers and remain over £20/t lower than last year. UK nitrogen and nitrogen/sulphur products still present a fantastic opportunity for UK buyers.
