Price pressure mounts for fert buyers
RECENT HEADLINES highlight the dilemma facing importers whose products will be required to make up the shortfall in domestic and European fertiliser sales.
On the one hand, front page news highlights the rise in wholesale gas prices by 50% between now and 2005; on the other, disastrous harvest weather puts great pressure on farmers‘ ability to pay for fertiliser.
To bring in imports in the current climate of world pricing the UK has to be close enough to other market prices to make the transaction worthwhile, and high gas costs place enormous upward pricing pressure on UK manufacturers.
Sufficient demand, and the ability to pay, is also essential to provide the confidence to import substantial volumes of fertiliser.
Just at the moment such product is neither plentiful nor cheap.
However, granular urea is starting to arrive at £160-£170/t. The equivalent price for ammonium nitrate would be £128/t, making this good value.
No one is prepared to comment about spring pricing as yet.
Will the arable farmer, post harvest, find £145/t for ammonium nitrate a barrier?
And, with so much grass available and feed wheat at low prices, will the livestock farmer be keen to purchase plant food?
With the news that Brazil alone will increase its fertiliser requirement by 2.5m tonnes – half the total UK requirement – exporters will have no shortage of alternative markets.
But, importer Regent Fertilisers stresses that products will be available for those who need them, and at value for money, but the era of incredibly cheap imports is over.
Nitrogen (Domestic) N (SP5) 34.5% | New season | Imported urea. | Imported AN Lithuan | Blended | Blended | Liquid | |||||||||||
November £140 | No supply | Would be £175 but no market yet | £130 | £127 | From £124 | No market yet | |||||||||||
NPK | Sept | Imported 27.6.6 | Imported | |||||||||
Complex 25.5.5 | £134 | No supplies | No supplies | |||||||||
15.15.20 | £153 |
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20.10.10/ 27.5.5 | £137 |
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17.17.17 | £158 |
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| 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 | Blended £128 and rising | £140 rising | £129 |
Ireland
Benchmark prices. Compounds out of season.
Northern | Urea, existing stocks only | CAN | 24.6.12 aftercut | 25.5.5
| Complex compounds |
| £155-£160 | £130-£134 | £160 (anticipated) | £150-£152 | £160-£162 |
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
