Gleadell Fertiliser Market Report - 30/09/2011

UREA

The urea market is stable to slightly firmer this week, though trading activity has been minimal due to concerns over the macro economic picture with the European debt crisis and slowing global economic growth.

Prilled Urea has managed to trade up $10/tonne this week with September business now concluded, that means any remaining tonnes are now October only with producers reporting they are already 50% committed for October.

Demand outlook is good and the market looks tight so it is likely that prices will now only move in one direction – up!

AMMONIUM NITRATE

As stated in last week’s market report, the new UK national AN prices have now been released. The target price for December was £360 delivered farm, and this is now the case.

PHOSPHATE

Phosphate trade continues to be busy in the East, but slow in the West. Time is running out for low-tax Chinese phosphate exports as the DAP and MAP export levies are due back up to 110% level from 1 October.

SULPHUR

Nitrogen plus Sulphur demand is set to rise further as agronomists report an increase in OSR plantings this autumn.