Spring sales have resulted in tight supplies of certain fertilisers according to the latest market report

Urea

After a surge in the Granular Urea market last week buying activity has slowed but product availability has become tight after many sales have emptied stores throughout the UK. Globally, all eyes have been concentrating on the Urea market in the USA as prices have increased by $110-115 for March shipments, matching the highs last seen in Sept/Oct 2011. The sharp correction we have seen over the last few weeks is mostly due to production problems and a panic among traders who are still covering short positions taken. April prices are at a discount but are likely to remain extremely volatile.

Ammonium nitrate

Imported AN is firm in the UK today as vessels are delayed and some will not arrive until late March/early April. Tonnage in store is running low and the market may get squeezed in the short term until more tonnage arrives. Grow How and Yara are holding prices for now but no doubt will continue to watch with interest.

Phosphates

In Europe and the UK, DAP and TSP spring sales are evident. Prices however, are static and attempts in Germany to raise the price by $8-10 have not been achieved. The long-term outlook for Phosphates see the market trend lower as Phosphate fertiliser subsidies for the 2012/13 season have been confirmed. There is a long road ahead for producers and a settlement on Indian DAP imports is unlikely in the short/medium term. April shipments are still under negotiation but prices are flat to weak.

Sulphur

Ammonium sulphate prices have seen a gradual increase over the last week across Brazil, Europe and the Baltic, and reduced production of Caprolatum product in Asia and North Korea have supported the market. Sulphur in the UK is in short supply for UK blenders.