Urea market remains flat; Phosphate demand 'limited'

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

Urea

The urea market has remained relatively flat and buyers would appear to be in no hurry to purchase their January/February requirements. However, while demand has been slow, supply concerns are mounting with regard to granular urea in Egypt.

Gas supply issues are expected to remain in place throughout January and, with increased domestic allocations, these prolonged periods of production losses will certainly help to underpin prices. European buying will re-emerge at some stage and buyers are likely to face a squeeze on availability and pricing, especially as buyers in Europe cannot defer buying decisions much longer with the spring season now approaching.

Ammonium Nitrate

In the Black Sea and Baltic, producers are now sold out on AN for January shipment. AN prices are holding firm, with some cutbacks in AN production in favour of ammonia production. The ammonia market remains strong as the impact of continued cutbacks in production, due to the documented gas problems, is helping to maintain prices at a high levels and preventing any inventory build-up at export points.

In the UK, GrowHow have held December pricing and Nitram and N+S grades should be considered now before values move higher, reflecting the firmer tone developing.

Potash

The market is weak as new supply contracts for China and India – which account for a quarter of the world’s potash market – have still not been signed. Prices will continue to drift until contracts are finalised.

Phosphate

Limited demand and ample supply continue to put pressure on DAP/MAP prices and further downward movement looks likely. The International phosphate trade has started 2013 in the doldrums, just as it ended 2012. Until we see some clear demand, the bearish sentiment hangs over the market.?