Discounts prove ‘unsustainable’
HEAVY DISCOUNTS on new season nitrogen by the merchant trade have led the three major UK ammonium nitrate wholesale suppliers to close their order books in only the first week of July.
From now on, business will be conducted at the August price for payment in September, which equates to £121-£123/t delivered to farm.
Quite how many farmers who ordered domestic ammonium nitrate at the merchant discounted June price of £115/t will actually receive product at that price is unknown, as, if not supported by the manufacturer, it will represent a loss to the merchant.
This price was labelled “unsustainable” by Stewart Beer, fertiliser director for Terra Nitrogen, the UK major supplier.
The leap to the August price may catch out some early buyers but signals the determination of the manufacturers to stick to a rigid pricing structure with monthly increments to shadow the record prices which they have to pay for gas and ammonia.
But higher prices will ensure an ample supply of imports, which is now needed to correct the lack of domestic capacity able to fulfil UK demand.
Nitrogen (Domestic) N (SP5) 34.5% | New season | Imported urea. | Imported AN Lithan | Blended | Blended | Liquid | |||||||||||
August £121-123 | £130
| No market yet | No market yet | £127 | From £124 | No market yet | |||||||||||
NPK | July | Imported 27.6.6 | Imported | |||||||||
Complex 25.5.5 | £130 | £138 | £125 | |||||||||
15.15.20 | £155 |
| ||||||||||
20.10.10/ 29.5.5 | £134 |
| ||||||||||
17.17.17 | £160 |
| ||||||||||
| Trace elements | 0.24.24 | TSP (47%P2O5) | Muriate of Potash (60%K2O) |
| Copper, zinc, selenium, cobalt Iodine and sodium Per acre pack £11.10 | New season £131 | £140 | £127 |
Ireland
Benchmark prices
Northern | Urea, existing stocks only | CAN | 24.6.12 aftercut | 25.5.5
| Complex compounds |
| £155-60 | £130-34 | £160 (anticipated) | £150-52 | £160-62 |
Republic of | CAN, large price variations | 24.2½.10 blend | Urea | 27. 2.5 5 | |
| €195 | €190-210 (Russian) €225-240 | €200-250 (dependant on source and quality) | €243 (CCF) €200 import blend | |
*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.
Note All illustrated prices are based upon 24 tonne loads for immediate payment. Prices for smaller loads and those with credit terms will vary considerably.
Source: Bridgewater
