Fertiliser Market Report - 25th May 2012

Nitrogen

Short term, the market still remains firm. India is expected to tender again in June, although whether this will be earlier or later in the month could determine when market prices adjust.

The longer India waits, the stronger likelihood that prices will correct downwards which may present a buying opportunity for farmers.

Ammonium Nitrate


In the UK, national prices have been released this week causing a surge in demand for UK and imported products as farmers now have a level on which to base their inputs for next season.

Monthly increments for July and August are in position to encourage uptake in the earlier delivery month.

Global AN prices are holding at high levels as a cold late spring has meant demand during April/May has been high - not allowing manufacturers to build up stocks in advance of a new campaign. Prices may also move up to adjust to the exchange rate (weaker Sterling versus US Dollar).

Phosphates

An unexpected burst of global deals during the week has firmed the phosphates market and perhaps hints to suppliers taking a bullish view against delays to contract settlements with India.

Europe and the UK have been active this week with purchases made for Q4 shipments. The price of phosphates in the UK continues to firm and this will soon have an effect on blended products, as long as nitrogen prices remain firm.

Sulphur

Demand for sulphur products in the UK remain strong. Globally, a tight sulphur market has lent further support to recent spot business as prices continue to firm across the globe.

On the supply side, traders are expected to scramble for remaining tonnes.

Demand in India and Morocco has captured the majority of the spot activity this week in particular India has bought significant tonnes.