With demand starting to pick up throughout southern Europe, we are seeing the tight supply of Nitrogen products being reflected in the UK after Yara lifted prices by €40. This is now underpinning the UK market as old positions unwind and the market starts to reflect replacement prices on Urea and AN. This is also having an effect on CAN and Amsul as importers reduce stock levels and demand picks up.
Imports of Lithan and Polish product are tight as demand in mainland Europe gives these producers increased netbacks.
Phosphate and potash prices remain stable with blenders keeping stocks at reasonable levels due to nervousness about requirements for the stock sector, in the light of the difficult conditions in that particular sector.
Internationally, with China out of the Granular Urea market, most nearby factories in Russia and Egypt are comfortable with sales well into February covering production.
We move into the spring with the quality products available, but expect to see demand pick up rapidly as soil starts to dry, arable sector looks to top up after successful drilling during autumn, coupled with higher output prices going forward, and the stock sector look to feeding their cheapest form of stock feed - grass.