CF’s ammonium nitrate plant in Billingham has restarted production after striking a deal with the UK government.

Calum Findlay, ADM Agriculture’s head of fertiliser, is reporting that no UK AN terms are available and supply concerns remain with the potential for a repeat situation in three weeks when government funding stops.

CF Industries produces approximately 40% of UK AN supply, but this is from two fully operational sites. With only one site is set to reopen the UK may still see some tightness in AN availability. Therefore AN importers have been forced to source AN from alternative sources beyond Europe due to tightness in supply, taking on 6.5% import tariffs.

AHDB report that in July, UK produced AN was quoted at £326/t. Since then, reports suggest a further increase, with October/November prices quoted at £475-£480/t.

Further afield, India has returned to the market seeking 1mln t of urea to be shipped by November. Prices immediately rose $10/t FOB Egypt on Tuesday.

Brazil has significant quantities of urea to buy for its safina (second corn) crop. Supply remains tight as values break historic levels. 

UK markets are following world urea replacement values, although true replacement values today are higher than where sales are being made.