Plant problems to pressure prices

DOMESTIC SUPPLY of nitrogen fertiliser has taken a setback this week with the failure of a boiler on the largest of the three nitric acid streams at the Kemira GrowHow factory.


This will take several weeks to rectify and represents a significant loss of production.


Kemira have made arrangements to buy AN from Terra and will make adjustments to their production planning so that customers will not miss out on their requirements of nitrogen or compounds.


But this will still mean a total loss of nitrogen fertiliser to the home produced market, which will have to be made up from elsewhere, perhaps other GrowHow plants or perhaps through imports.


In the long run, no one expects farmers to go short, but any plant failure in today‘s balanced market can only place an upward pressure on prices.


It also serves to illustrate that this season‘s early buyers managed to get a good deal.


As the order books finally groan to a close it is not surprising that buyers are balking at paying £7/t more than one week ago.


But prices will rise by a further £2/t at the end of August, which will stimulate further early buying.


Indeed September may be one of the months when we will see a hike in pricing above the £2 level.


Meanwhile the aftercut market starts to draw to a close and interest in PKs remains dormant until the end of harvest.




















Nitrogen (Domestic) N  (SP5) 34.5%


New season
26.8.8


Imported  urea.


Imported AN Lithan


Blended
20.10.10 & 29.5.5


Blended
25.5.5


Liquid
Nitrogen,
37kilos/100
litres
Or
29.6%N/t


August £121-123


£130


 


No market yet


No market yet


£127


From £124


No market yet


 










































NPK


July

Imported
27.6.6

Imported
32.5.0


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
Ireland


Urea, existing stocks only


CAN


24.6.12


aftercut


25.5.5


 


Complex compounds
27.6.6.


 


£155-60


£130-34


£160 (anticipated)


£150-52


£160-62


 





























Republic of
Ireland*


CAN, large price variations


24.2½.10 blend


Urea
Granular, non EU           


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