By Roger Chesher

THE pattern of the compound fertiliser market has now been set as Hydro and Terra follow Kemira in publishing their forward price lists.

With similar complex compound products and faced with broadly the same raw material costs, it comes as no surprise to find Hydro prices at parity with those of Kemira.

Terra, however, is now producing a blended compound range and is reported to have entered the market 2/tonne below Kemira and Hydro.

In theory this means we could be faced with a three-tier market: Complex compounds at the top of the price range as usual, blenders some 5 to 7 below, and Terra in between.

Complex manufacturers would argue that having all nutrients bound in each granule justifies the price differential, which is of course nothing new.

Blenders will argue that in practice their products represent good value for money and they too have a loyal following.

Terra, equally, is keen to stress the quality of its new range and the “blue bag” has always attracted a premium in the marketplace.

But Terra is essentially a nitrogen company and its compound range is smaller than those of the other big two.

Perhaps we can assume Terra will serve its traditional customers, leaving the remaining market with business as usual.

Meanwhile, the marketplace is now quiet following a run of nitrogen business.

We have to wait and see if the grassland farmer and the more diverse network of grass-oriented merchants follow their arable counterparts by taking compounds in store now that the new price structure is revealed.

CURRENT PRICES

New-season nitrogen (SP5) 34.5% Anticipated spring price nitrogen Imported urea (if available) Imported AN (new season) Blended 20.10.10 and 25.0.16 Blended 25.5.5 Liquid nitrogen, 37kg/100l or 29.6% N/t
October 119-120
November 122
December 124
January 130
February 132
March 134
Granular 135
Prilled 125
106-108 (Quality) No market yet No market yet No market

NPK October, pay cash January, pay cash April, pay cash (forecast)
Complex 25.5.5 120 126 134
27N30S 122 132
20.10.10/29.5.5 123 129 137
17.17.17 140 146 152

After-cut NK cash 0.24.24 TSP (47% P2O5) Muriate of Potash (60% K2O)
118 106-115 140 120

 

IRELAND

  Imported urea

CAN

24.6.12

0.16.36

Complex compounds
27.6.6

Northern Ireland Not available 95 No market No market 117-122
 

CAN

24.21/2.10

Urea, imported

27.21/2.5

Republic of Ireland* 120-124 No market Not available No market

*Note in the Republic of Ireland nutrients are expressed as elements not oxides. Analyses will not be directly comparable with those used in the UK.

*Prices in the Republic are IR

  • IR1=UK0.752 on 12 October

     

    Note All illustrated prices are based on 20-tonne loads for immediate payment. Prices for smaller loads and those with credit terms will vary considerably.

    Source: Bridgewater Partnership