Calum Findlay, Gleadell’s Fertiliser Manager, comments on the fertiliser markets

Urea

A mixture of continued price increases in most parts of the word, position covering and a lull in general farm buying has led to a quiet urea market this week.

The market does not appear to be oversupplied and no major price reversal is expected in February/March, although we have seen the market in the UK, France and Germany all trading down slightly over the past week.

In Egypt values remain firm as US interest and buying continues. The last trade at $435 was up on previous levels, supporting the theory that, although markets are currently quiet, prices will firm as buying activity steps up and Q2 approaches.

Ammonium nitrate

Nitrate prices in Europe are firm. The explosion at the Yara Tertre factory in Belgium on 14 January has seen prices firm further – the loss of 100/150,000 tonnes of production occurred just when spring demand was building.

As with urea, price increases continue. Imported values have risen sharply over the past few weeks with availability restricted to late March/April shipment. New UK prices released on Tuesday pushed on-farm values above £300/t for March delivery.

Phosphate and potash

Both phosphate and potash continue to firm globally and UK values have followed. Potash demand is high and increasing, forcing values higher as stocks diminish.  Phosphates stocks are becoming tight at blenders in the UK and prices of all NPK grades have increased in line with replacement values. Despite this, today’s potash and phosphate prices are still £100/t cheaper than a year ago.