Fertiliser market demand remains limited until New Year

Calum Findlay, Gleadell’s fertiliser manager, comments on fertiliser markets:

Urea

The urea market is slightly easier this week - the traditional ‘pre-application’ depression is upon us. Worldwide demand is still expected to be strong for Europe and the US, due to strong plantings.

European stocks are at a very low level for this time of year, due to the slow start to the fertiliser marketing year. This dip should be seen as an opportunity to cover some of your requirements, or at very least calculate your requirements based on current cropping. Granular and prilled urea values have eased around £10/t in the week.

ALZON 46

Stabilised urea is finding a lot of support from traditional ammonium nitrate customers looking for a risk-free urea product, at a small premium to conventional urea, and a discount to AN. The mode of action, flexible application times and reduced emissions / losses should all be of interest to AN and urea users.

Ammonium Nitrate

Global ammonium nitrate prices continue to remain firm - forward replacement prices for imported and domestic produce are at significantly higher levels than today’s values. The UK market has been very slow this year, due to uncertainty over prices, poor harvest and sowing times and increased interest in urea. With the dip in urea, this adds only further uncertainty to the market place. With around 70 delivery days left until peak application, demand will outstrip supply in the medium term.

Phosphates and Potash

Worldwide demand remains limited until the New Year, with manufacturers competing for the little business available. UK prices are relatively weak, with blenders offering special deals on delivery and payment.

Global negotiations on potash supply deals into China and India are ongoing with both countries because of sufficient stock and low demand. Demand is expected to pick up from Feb/Mar once supply deals are finalised, leading to a firmer market.