Calum Findlay Gleadell’s Fertiliser Manager, comments on fertiliser markets.
AN
After the release of UK ammonium nitrate terms a few weeks ago, demand remains high for nitrogen products. But, as we approach the annual Cereals Event, a few buyers have paused, waiting to see the views of merchants before they cover their remaining requirement.
June terms are still available for UK ammonium nitrate, but only until today (7 June) when all offers will be closed and then moved onto July/August. Demand for imported ammonium nitrate is still strong, although values are being squeezed to compete with UK product.
Urea
The urea market has moved downwards this week for forward positions after the Indian tender closed on 3 June. There is no real change on the paper market, though bids were accepted nearly $30/t below previous levels.
This is thought to be a short term blip in the market, but it does represent an opportunity for urea buyers that have not covered their new season tonnes. Currency is heavily affecting the UK market too. The £:$ this morning has firmed by approximately 3%, jumping from $1.51 to $1.55 and this gives an opportunity to importers to buy at about £7/t below last week’s levels.
Prilled urea levels have also corrected on the global market, but, due to UK stocks being low, spot tonnes are still achieving a premium compared to new season levels.
