Calum Findlay, Gleadell’s fertiliser manager, comments on fertiliser markets:
Urea
Over the last week we have seen further signs that the global prilled urea market is tight.
Turkey and Latin America have both paid significantly higher prices for February tonnes compared to previous weeks. The speed of which this market has firmed has been a concern to some buyers, however, supply/demand outlook for February/March suggests that no stock build up will take place at producer level.
The granular urea market has been quiet this week. No new spot sales have taken place and the market still remains tight. Production for Urea in Egypt continues to show signs of problems and this will push European buyers to source other origins for March.
Ammonium Nitrate/ Sulphur
Globally, nitrate prices have continued to firm over the last week. Product is in tight supply and buyers in Brazil are seeking product, pushing prices higher. In the UK, imported product looks to have firmed as cheaper stocks levels are liquidated. A further price increase is expected over the next few weeks and this will be assisted by the strength of urea. So, while GrowHow continue to hold pricing, new terms for February/March are expected.
Phosphates
This week it looks as though phosphate market found the floor and values are now picking up. In the West, America and European importers are seeing import supply principally from the Baltic and Morocco. In the last few days, hints that the market is firming has been supported by the two largest producer countries, North America and China, where demand has significantly increased. The activity in Europe and the UK has also gained speed.
