Urea

After a surge in global urea values over the past few weeks, the market now looks to be stabilising.

The reduction in exports from China has helped tighten the market in the second half of 2017. This contraction is due to a fall in production and a greater focus on the domestic market.

The IPL Indian tender took place this week with indications that it has managed to secure about 500,000t of urea from China, the Black Sea region and the Middle East.

The questions remain: how much more tonnage, if any, does it need, and if it has bought sufficient, where does the next demand come from to sustain this level of pricing?

Ammonium nitrate

After the withdrawal of UK AN prices last Tuesday, the market is quiet in anticipation of new levels. CF has sat out of the market, adapting a wait-and-see approach to other nitrogen markets, especially urea, to avoid posting uncompetitive prices.

Other AN prices (Yara UK) saw a £20 increase, following European levels which have seen a €40/t increase since last month.

NPK

With nitrogen markets firm, phosphates are following a similar spike in global prices this week. On this basis, new NPK compound prices are expected to increase significantly in the impending UK producer price list.