Logistics firm nitrogen prices

Nitrogen prices are rising on logistical pressure as spring orders come in, but with prices quoted in a wide range, it is worth shopping around.

UK manufactured ammonium nitrate is priced anywhere between £301 and £315/t for full loads delivered in April for May payment.

Currency pressures mean that imported product is not far behind, with Lithan at £295-305/t for spot delivery and at up to £310/t for April, depending on region. Other East European-sourced nitrogen is about £5/t behind these prices.

Transport and logistics were the big issues, said Wynnstay fertiliser manager Dave Mitchell, with UK ammonium nitrate only available for April delivery and most blending capacity fully committed for the rest of this month.

At importer Nidera, fertiliser manager Richard Monck urged growers to look further ahead to the possibility of cheaper urea in June/July this year as global supply and demand shifts were likely to bring more urea to the EU.

Regional variations in current fertiliser stocks and availability in the UK meant there were opportunities for growers, so it was vital to talk to local contacts, said Frontier national fertiliser manager Chris Tye.

“Nutrition this spring will not be just a simple matter of doing what you’ve always done – it’s probably a case of little and often,” he said.

Meanwhile AtlasFram Group, the 1,250-member Suffolk buying group, has launched a fertiliser buying pool to reduce exposure to this volatile market.

The move follows increased volatility over the past few seasons as the market here has moved away from set seasonal pricing offering discounts for early bookings. Urea will be offered through a pool operating from September to January.