Gleadell Fertiliser Market Report - 18/11/11

UREA

The global Urea market is still very stable with Egyptian Granular Urea remaining at the same levels as previously seen over the last few weeks. The exception to this trend is the US barge market where prices have fallen $10 per tonne due to a lack of buyers. However, buyers have been made aware that, if India joins Pakistan in the next tender, prices are expected to rise into December. This tender is due towards end November and many traders will be buying before this price increase.

Prilled prices in Yuzhny have stayed around the same range since the last week of September. As of now, Trading Corporation of Pakistan (TCP) has booked 440,000 tonnes and the market is very firm again for the foreseeable future.

Additional Urea demand is expected from the UK, Germany and France in December ahead of top-dressing applications for winter crops. Suppliers and distributors expect a rush of orders ahead of the Christmas and New Year holidays.

AMMONIUM NITRATE

Ammonium Nitrate is also remaining very stable but with little demand. There is a large price gap developing between imported and UK product and buyers may see the opportunity to cover some tonnage before demand picks up post-Christmas.

PHOSPHATE

Phosphates import demand is showing signs of life in Latin America and continues healthy in India. New trades and outstanding spot demand adds up to about 180,000 tonnes DAP/MAP and 350,000 tonnes NPs/NPKs worldwide including Brazil, India, Venezuela and Central America.

POTASH

In UK and Ireland, there is little demand. Activity is only expected to pick up in the second half of January 2012.

SULPHUR

Tight market fundamentals have lent support to the sulphur market so far this year, helping global prices to stay high since February and above historical levels. Some comment that, with lower-than expected winter restocking activity, Chinese phosphate producers are likely to return to the market as early as late November to build up sulphur inventories for the spring fertiliser application season