Fertiliser Market Report - 18th January 2013

Calum Findlay, Gleadell’s fertiliser manager, comments on fertiliser markets:

Urea

Egyptian Urea prices have moved higher this week as buyers from both Europe and South America enter the market. Lost production with the gas supply issues will now underpin prices at a time when buyers cannot defer buying decisions much longer. Some switching from granular to prilled product has occurred but prilled prices - ex the Black Sea and Baltic, where we are starting to see logistical problems due to ice - have also firmed $20 tonne over the last ten days.

Ammonium Nitrate

AN prices are holding and, with Urea levels moving higher, this will support pricing going forward. A firmer tone will develop once we see genuine demand develop, meantime, GrowHow have held December pricing for Nitram and N+S grades.


Potash

The market is weak as new supply contracts for China and India – which account for a quarter of the world’s potash market – have still not been signed. Prices will continue to drift until contracts are finalised.

Phosphate

Limited demand and ample supply continue to put pressure on DAP/MAP prices. In the UK, demand for TSP has resurfaced as levels have now slipped below the lows last seen in April/May 2012, presenting a buying opportunity. We are seeing a moderate change in sentiment, hinting that demand has been deferred only and not destroyed.