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

Urea

Demand has returned to the global market with buying interest building in South America and the announcement of Indian and Egyptian tenders.

India will tender for about 1.5mln t of urea for April/May shipment, whilst Egypt will look to purchase 150,000t of urea and 50,000t of ammonium nitrate as gas supply problems, which have blighted them all season, create an internal shortfall.

This could provide a short-term floor to the market, especially as Chinese suppliers, more recently the primary source of urea for such tenders, look to prevent further price erosion.

Ammonium nitrate

The market remains slow and holders of imported product are having to force product into a very price-sensitive market. GrowHow has held terms for April deliveries and can guarantee delivery, a big plus in a market suffering from a lack of registered hauliers.

It is very likely we have seen the top of the market. Demand continues for top-up tonnes and importers continue to try to clear stock ahead of any new-season price reduction. This will influence and put pressure on the market in the weeks ahead.

NPK

Globally phosphate prices remain stable, due to US barge prices edging higher and recent demand into India.

In the UK, lower straights and NPK prices in recent weeks have tempted buyers back into the market, providing some short-term support, particularly in southern regions.