Urea
A price correction has finally started in the Urea market after the 10-week Bull Run that has seen prices rise by up to 65%.

The emergence of China into the export market has indeed taken the steam out of the market, and this should be seen as an opportunity for UK buyers who have still to enter the market.

Major demand is still waiting in the wings for late July/August shipment and this demand could easily produce another quick price run up in prices as traders look to cover more business in India - who still have more tonnes to buy despite buying over 800,000 tonnes in the most recent tender.

Trade balance calculations suggest the market is fundamentally strong for the second half of 2011 and that prices will remain on an upward curve following the correction we are in today.

Apart from Egypt, producers everywhere have sold most of their July tonnage and now feeling comfortable, so they will not be under immediate pressure to concede lower prices.

Ammonium Nitreate
Demand at farm gate level in the UK for AN has dropped off as prices for domestic AN and imported product continue to rise. East European producers now appear to have raised their prices for the UK in line with the GrowHow price as Nitrogen - and especially Nitrogen + Sulphur grades in Europe - are extremely tight.

PK

Phosphate markets continue to firm with limited Chinese exports of DAP and MAP still the dominant factor. Strong demand from northern and southern hemisphere buyers, who continue in the market in parallel, will help to keep this market firm as we go through Q3 intoQ4.

Prices for NPKs in all forward markets have risen.