UREA

The global Urea market has showed signs of firming in all regions this week. The Baltic and Black Sea have seen prices for prilled Urea firm $5-10/tonne, and a tender in Egypt yesterday saw prices for granular trade $10 firmer on the week.

The firming trend started after last week’s Indian tender buying in excess of 1.2mln/t. The much-anticipated purchase tender from Pakistan’s TCP this week has strengthened the market further, and a flurry of closed-door negotiations and price discussions has yielded a more positive sentiment to the market. 

AMMONIUM NITRATE

In France, Yara raised its AN price by €10pt on 24 October to €375pt in bulk. The price increase is effective immediately, but will relate to deliveries in November, for which Yara has product available. This move was in line with expectations, lending support to GrowHow UK, who will also look to keep moving prices upwards - particularly as fob prices of AN in East Europe are also holding firm.

The CAN demand from all parts of the market is very slow, so little is happening in the way of new sales. Official prices in Europe are still at €289pt cif inland, but market levels are lower. Yara is expected to raise list prices for November. However, there is unsold CAN in the system from earlier in the year and higher prices will not be accepted quickly.

PHOSPHATE

More activity has been reported in the phosphates market this week with sales into India, Pakistan, Europe and Central America. Phosphates remain stable in the UK.

SULPHUR

Overall, the sulphur market remains quiet as fourth quarter contract settlements are ongoing. The trend thus far has been for rollovers to slight increases in prices. Market sentiment is also being impacted by an uncertain economic outlook. After the conclusion of contract negotiations, focus will turn toward the 2012 outlook given expectations of a relatively tight market - although this, of course, is dependent on sustained demand levels.