Calum Findlay, Gleadell’s Fertiliser Manager, comments on fertiliser markets

The UK fertiliser market has been very active, with a high level of new-season demand for both ammonium nitrate and nitrogen:sulphur products.

The unexpected early release of GrowHow terms last week saw many growers enter the market with prices representing good savings over those seen a year ago. Imported AN demand remains limited, with typical values only reflecting a £5/t saving against UK product, so there is little volume arriving in the UK. In continental Europe and on the world market as reflected at the Chicago conference last week, the attitude of many traders was relaxed, with many viewing trade as being extremely quiet - very different to what is being seen in the UK.

Urea sales for immediate use are now complete and demand for new season has slowed as a result of a firming global market. As stated in last week’s report, the Egyptian Government has stopped all gas supplies to industry and this has elevated price levels significantly. The next Indian tender closes on 3 June and this will be the next benchmark for many traders going forward into Q3/4. Prilled urea levels will remain high - producers are in no hurry to move tonnes until details on the tender are released.