Fertiliser supply tightens as gas price rises further

High gas prices have led to more European ammonium nitrate (AN) plants shutting down either wholly or partially, tightening supply further.

Some of these were big suppliers to the UK, including Polish plants Anwil and Grupa Azoty, which have halted production, while Lithuanian manufacturer Achema is due to close on 1 September.

Imported AN was available midweek in limited quantities at £820-£835/t but with the trade expecting offers to be pulled as the closures hit supply.

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CF Fertilisers UK withdrew terms last week, and midweek, merchants said that with gas prices as high as they were, they were not expecting new CF terms anytime soon.

Urea is available but with values rising as demand switches from the less-available AN. Midweek, it was being offered at £745-£760/t delivered, depending on region.

Urease inhibited product is generally priced at £40-£50/t above the level of the conventional product.

Alongside stronger demand, urea values and those of other imported products are also rising on a drop in the value of the pound against the dollar.

Phosphorus and potassium values are reported to have dropped back slightly in a bid to encourage orders for importers.

However, the trade is expecting anything up to a 35% drop in use for the coming crop, on the back of high prices.