Calum Findlay, Gleadell’s fertiliser manager, gives insight into the latest market developments for a number of fertiliser types. Prices are set to remain stable this week as markets are relatively quiet.

Nitrogen

Due to the annual IFA Conference in Doha this week the market has been quiet. The urea market is still unsure in which direction to go and global markets remain very volatile. Prices have corrected by almost $15 due to prices trading slightly lower in the Pakistan tender last week and, with some producers liquidating stocks, this may set the trend for lower prices in Q3. However, there is still substantial demand from Europe, US and Pakistan and, with prices already corrected, it is doubtful that the price will fall further in the short term.

Ammonium Nitrate


The sentiment is much the same globally, the market is quiet and traders and farmers are not rushing to buy with urea prices correcting slightly. Prices in the UK have remained the same for imported product and the release of national terms did not inject the interest that was first thought. Demand is still there however, and likely to build as we approach Q3 and 4.

Phosphates

FMB reported this week that discussions at the annual IFA conference in Doha centred on agreement between Indian DAP importers and major sellers, or rather the lack of one. Traders clearly believe in the market, but end user demand has yet to materialise at prices that make these positions workable. India will come to the market and DAP imports may be concentrated in a narrow time frame, which will tighten supply. Thus, the market looks set to remain stable to firm with producers mostly fully committed for June.

Sulphur

The sulphur market remains firm in the UK and stocks remain low.

Potash

The mood described by members of the conference could be cautious at best and pessimistic at worst, with the exception of Brazilian buyers where demand has been strong. Many potash buyers were asking for stability as the economic crisis flaring up again in Europe has brought back all the uncertainties that have troubled the potash market earlier this year. Even though crop prices are profitable, they are volatile and therefore farmers could delay purchasing fertiliser until the last minute.