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

Urea

A price drop at the beginning of December encouraged buyers back into the market. However, markets this week have reacted and prices have firmed once again.

Supply remains tight in China, and US Gulf prices have moved up along with Algerian and Egyptian FOB prices.

 In the UK, this price increase in recent days has stopped many traders from stepping back into the market for January shipments, which may potentially mean a shortage in urea for the spring.

Ammonium nitrate

CF Fertilisers closed its January delivery terms today. Current terms for February and March will remain in place and be reviewed early January.

As UK prices move up, imported AN terms have started to emerge for January/February arrival. Although imports are trading at a minimal discount currently, traders have taken the view that the market will continue to step up in the coming weeks.