The fertiliser market is, for the most part, firm this week, with steady demand for nitrogen and phosphate in particular

Nitrogen

Global granular urea continues to firm, but we have seen market pressures changing. The US have stopped their long buying spree which was the initial trigger to the bull run. However, Brazil, Pakistan and India are currently negotiating terms for May/June which will keep the market firmer for much longer than was first expected. Demand in the UK is minimal, which is normal for this time of year.

Prilled urea prices have firmed significantly over the past week, as the gap between granular and prilled product continues to narrow. Manufacturers in the Baltic have moved prices above $500/tonne equating to spot prices today of approximately £390 delivered farm in the UK. Availability remains tight with producers sold out for April and the majority of May - but Gleadell have some tonnage in the UK available now for any immediate demand.

Ammonium nitrate remains firm globally, supported by both urea prices and continued late spring demand. In the UK, farmers are applying AN because of the dry weather and are topping up for arable and grass crops. Attention will soon turn to new season but, with stocks of AN very low and urea prices very high, we are in a completely different scenario to this time last year. We may have already seen the correction in AN pricing in Jan/Feb when national AN prices were reduced by £35/tonne.

Phosphates

The phosphates market has stabilised this week and continues to show signs of firming in the forward positions. DAP sales out of the US Gulf have lifted the export price and confirm the weaknesses in the market from Q1 are ending. TSP prices in Europe are over £100/tonne below the highs seen in Oct/Nov 2011, this has attracted some buyers back into the market but availability still remains tight.

Sulphur

With buyers concentrating on nitrogen and phosphate demand, the sulphur market has weakened somewhat. Producers are said to be under no pressure to sell - although China still seem to be negotiating terms which may eventually add support to the market and firm prices. In the UK there is still some buying interest, but little availability.

Potash

The potash market is showing a mixed trend this week. Prices are starting to firm in the US but are correcting downwards in Asia. In the UK the spring application season is already well covered with expected demand not emerging until Q3.