Latest hike in nitrogen price takes it to more than £1/kg
© Tim Scrivener A shock rise of £20/t in UK manufactured ammonium nitrate prices has stalled trade and left merchants wondering whether the market has peaked.
CF Fertilisers’ latest price rise has taken delivered values to between £363/t and £365/t for full loads in September and put the cost of nitrogen at more than £1/kg.
Merchants attribute the rise to high gas prices, strong global demand and the fact the UK market has, as usual, been trading at considerably lower levels than on the continent.
Lower imports
Imports are way down on last year and although stock is available, with production restricted from one Lithan plant, it is not plentiful and is costing £338-£350/t delivered this month.
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It is estimated by merchants that no more than 20% of urea orders have been placed by UK growers and there is little in stock. Offers are in the region of £405/t to £410/t for September through to December delivery.
While there was a recent dip in the market for this commodity, merchants say that currency and freight costs mean that the UK saw little benefit from this and that there is a lot of pent-up demand globally.
With prices so volatile, few cargoes are thought to have been booked yet for autumn arrival and the market is waiting to see the outcome of a large Indian tender expected shortly.
P and K prices
In the straight markets, phosphate and potash prices have also firmed again, taking diammonium phosphate (DAP) to between £563/t and £570/t for September and triple super phosphate (TSP) to £465-£478/t.
Further monthly rises of £5/t are expected for October and November on these products, while muriate of potash (MOP) is at £395/t to £403/t for September, with another £10/t added for October and £5/t on top of that for November.
Global fertiliser commodity prices have risen this year on strong demand and the UK’s reliance on P and K imports, along with higher shipping and haulage costs, has added to this.
The high prices are likely to result in last-minute demand close to time of use, bringing warnings from suppliers on logistics challenges, which will be made worse by the shortage in driver capacity.