UREA

In Europe, the Urea situation remains unchanged. In Southern European countries like Spain, farmers are desperately waiting for their Granular Urea to arrive, but severe loading problems in Egypt are delaying all shipping programmes. If Urea does not arrive before mid-late February, by the time discharge/bagging and distribution has been executed, it may be considered too late for applying by some farmers and they may be forced into using an alternative Nitrogen product.

In Northern Europe, customers are a bit more comfortable, which is a good job as a lot of product on offer at present is February/March option that could mean mid-March arrival and late March delivery. Tonnages in the UK for prompt delivery are virtually non-existent, meaning anyone looking for a February delivery may have to pay a premium today and take from the limited stock there is. There is still potentially a big demand across Europe that needs to be covered but, with no bigger tenders from countries like India or Pakistan to add support to the market in the next two to three months, any demand should be easily covered so upside potential is limited.

AMMONIUM NITRATE 

High stocks of ammonium nitrate in UK port warehouses continue to diminish and prices have moved upwards in line with replacement values. GrowHow UK, however, have announced new lower terms for February AN to compete with imported product as the outlook for all nitrogen markets remain very volatile. Upward potential may occur if it comes to problems on the logistical side and demand happens all at once. But this is unlikely as farmers have covered first dressings and, therefore, demand is likely to be spread out February-May. However, grain and corn prices remaining firm could be the one thing that does lend support to the market going forwards from today.

PHOSPHATES

On phosphates, market activity remains very slow. Several cargoes have been sold by producers, ex the Baltic and Northern Africa, to various European destinations, but these have all been traded at lower levels. Spring activity will pick up in February/March, but any demand in this period is likely to be well covered in Northern Europe. Still considered as the 'off season' for a lot of markets, some UK blenders/importers have been reducing prices to clear stocks of phosphate.

POTASH

Potash demand has increased in Europe and the UK over the past week, and prices are now firming in advance of the spring season where business still has to be concluded. All blenders in the UK have increased pricing during the last week in line with replacement values.

SULPHUR

The European/UK sulphur market remains stable/firm with a healthy demand in all areas.