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

Nitrogen

Urea values are on the up, after a long period of stability. A production/supply problem for Algerian material to the tune of 120,000mt is driving the market. Short covering from other markets is pushing values higher. As ever, North African exports can be very volatile and some suppliers in the UK will have problems accessing them.

Demand for ammonium nitrate is moving upwards as are prices. Nitram terms are available for December and January; imported products are trading at only a very small discount. Spring is very much in the sights and timely delivery is starting to become an issue. There are only seven weeks until first nitrogen applications.

Potash and phosphate

North American trade is slightly firmer for DAP, with will lead to an increase in physical values. Prices have fallen to a level making purchasing attractive for spring application in the US. In the UK, Russian origin phosphate is due an increase in import tax from the New Year.

The overall picture for potash is neutral to firm. There has been no lasting effect from the Russian supply break-up – all problems surrounding this have been resolved so any new bullish news will increase values, as will spring, and peak UK demand, which is only weeks away.

For blended PK and NPK products huge demand is expected after a fairly slow autumn. December production and delivery is nearly at capacity and January and February will be very busy.