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

Urea

Globally, the US market remains very firm, but elsewhere around the world values have stalled.

In the UK we still have an active spot market, although the recent cold/wet weather continues to hinder applications.

Prices look set to remain extremely volatile over the next 12 months, but this does not stop a few speculating on new-season values.

While we are likely to see prices reduce, the market is near a 10-year low, so it is open to question how further this trend can go, given the number of uncertainties that lie ahead.

With oil prices already showing signs of having bottomed out and the potential threat to the pound/dollar rate following a possible EU exit, only time will tell.  

Ammonium nitrate

Imported AN prices remain under pressure as importers are being forced to sell tonnes that continue to arrive on contract.

This is becoming increasingly difficult as users of AN are taking advantage of the small premium available for UK “bluebag” quality product.

NPK

Blenders continue to trade in an approximate £10 range as they try to step prices up to reflect raw material costs, while remaining competitive in a tough market.

They are already working at capacity and now await the arrival of new vessels of raw materials to fulfil orders, potentially causing delays with deliveries.