Robert Buck, Gleadell’s fertiliser trader, comments on fertiliser markets.
The welcome warmer weather across the UK this week has sparked interest for last-minute demand of spot tonnage across all grades.
Only in the past few days has the land dried out enough to enable growers to start drilling and spreading. The main priority is to ensure that crops are provided with the correct nutrients to allow them to catch up.
The discussion among the trade is that we are 4-6 weeks behind a typical year. Logistical problems are still an issue for some suppliers, with deliveries several weeks behind, particularly after a surge in demand for nitrogen. Stock levels remain sufficient with all importers and blenders.
Urea
The European and UK urea markets continue their downward move due to an evident lack of demand. Weather across Europe has hampered urea buyers in taking product and this has affected global levels, particularly on granular urea.
However, this downward trend in the price has created an opportunity for some last-minute buyers in the UK. Urea is currently achieving £345-£350/t delivered on farm, which compared with AN provides a significant saving. This has created interest but buyers thinking of using urea are advised to make a decision quickly as application is imminent.
Globally discussions are now focusing on new-season levels. Manufacturers are comfortable for the short term but there is interest from France, Latin America and Mexico for forward positions on prilled urea. In the long term, it is anticipated that Chinese product will be on offer with a significant surplus.
AN
Demand in the UK for spot ammonium nitrate deliveries is high. Current demand has firmed prices of imported product to £300/t delivered on farm and for UK product upwards of £310/t delivered. These levels do not reflect replacement levels with manufacturers, which means imported and UK prices are likely to firm further in the short term.
Sulphur
Demand for nitrogen sulphur grades is strong. Gleadell’s Piamon product is now available with the shipment due early May.
Phosphates & Potash
UK phosphate and potash prices are stable. Some demand is expected for spring-sown ground and extra potato and maize acreage may prompt some activity with top-up tonnage.
Globally, spot markets for phosphates are static with US and Chinese domestic markets receding somewhat. Manufacturers are still holding back for May shipments, assuming that markets will firm again after the current lull due to European weather. Buyers may require tonnage to be shipped swiftly if demand suddenly increases.
