Calum Findlay, Gleadell’s fertiliser manager, comments on the fertiliser markets

Urea

Over the past week, the global market appears to be stabilising for spot granular urea, suggesting we may have seen floor values. With China unwilling to drop granular and prilled urea prices any further, it is likely that recent tenders will add further support to a strengthening market in the coming weeks.

In the UK, importers continue to offer spot prices below replacement values and are taking speculative views on forward markets. In our opinion, the market isn’t as weak as first thought. Urea continues to be an increasingly volatile commodity and current values could well be the bottom of the market. Q3/4 levels, however, remain unknown.

Ammonium nitrate

It’s a very different picture for ammonium nitrate, with both UAN and AN values struggling to find support in Europe. UK domestic prices have slipped further this week as holders of imported AN compete to move tonnes after a quiet spring market. Manufacturers are also suggesting lower June values, adding to pressure.