UK facing holiday fert shortage

THE UK fert market is in a period of short supply, with producers working flat out to fulfil existing demand, but hampered by unexpected shutdowns.


Kemira at Ince, near Chester, are said to be suffering down time on their ammonia plant, which will not be running again until the end of the year.


It will be difficult to source ammonia to substitute in this run up to Christmas.


Following the holiday, imports will not be cheap and supplies could be subject to frozen conditions in the Baltic, leading to delays.


Fortunately for producers, demand before Christmas remains low, but under these circumstances, spring buyers might be advised to grab their fertiliser as soon as possible.


But the overall view is that demand will be met, not least because Terra have sourced alternative nitrogen supplies for their industrial customers, freeing up home production for the UK farmer.


The upward trend in pricing has now ceased and the January price of £147/t for AN may well hold into the spring.


It has always been a principle of the UK fertiliser industry to sell ammonia or base materials to competitors when unexpected breakdowns or shortages occur.


This helps to ensure that the home industry can meet market needs as fully as possible.


The alternative would be to rely more heavily on imports, which would be costly at present, as exporters seek sales more lucrative than the UK in other parts of the world.


There were times however, when the UK market appeared attractive, leading to dumping of product here, to the detriment of the home producer.


The purpose of the anti-dumping legislation imposed by the EU is to smooth out these variations, ensuring security of supply at pricing which more accurately reflects the varying costs of production.


CURRENT PRICES (£/t)
























Nitrogen (Domestic) N  (SP5) 34.5%


Domestic AN Spring


Imported  urea.


Imported AN Lithuan


Blended
20.10.10 & 27.5.5


Blended
25.5.5


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


Jan £157



Feb £158


Mar £160


£195 granular
£165 prills


£147


where available


£150


From £146


No market yet


 
































































NPK


Jan (add £3 for March)

Imported
27.6.6

Imported
32.5.0


Complex 25.5.5


£154

No supplies

No supplies


15.15.20


£168


 


20.10.10/ 27.5.5


£158


 


17.17.17


£173


 


 
















































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 £126-135 £150 £130


Ireland


Benchmark prices. Compounds out of season.





















































 


Urea, existing stocks only


CAN


24.6.12


aftercut


25.5.5


 


Complex compounds
27.6.6.


Northern
Ireland

£200 £150

£160 (anticipated)

£160 £170

 



















































Republic of
Ireland*


CAN, large price variations


24.2½.10 blend


Urea
Granular, non EU          


27.  2.5 . 5


 

 €215 €228-240
€260-280
(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