Gleadell Fertiliser Market Report - 13th May 2011

FERTILISER MARKETS ’ Calum Findlay, fertiliser trader

The Urea market is on fire. The market continues to firm, with prices strengthening from most major origins thanks to very limited availability from most sources. The shortage is particularly acute in Southeast Asia, where demand is clearly outstripping prilled urea supply.

Indeed, the rate of price increase is causing concerns that the market may overheat. The lack of supply looks most evident over May and June; hence prices are expected to remain firm, at least until China enters the market in July.

The largest price rise has been witnessed in Egypt with an increase on last week of $21. In the US, Urea barges have also strengthened as the domestic season began to show movement.

In the UK, Ammonium Nitrate supply is still tight. We are still waiting for the nationals to release their new season price but demand is slow, partly due to the dry weather.