Katrina closes down fertiliser plants

Speculation has been rife this week as the impact of Hurricane Katrina undergoes evaluation to determine its effect on the global fertiliser market.


Most are aware of the immediate effect upon energy prices, oil in particular, with a consequent movement in forward pricing for gas.


Fortunately, these prices have come back a little and, with the UK ammonia manufacturers already taking steps to insulate themselves from gas prices at their peak, there has been no immediate effect on fertiliser nitrogen.


Unfortunately, structural damage to phosphate producers on the Gulf of Mexico has altered the supply/demand balance.


The fact that they have been forced out of production and are no longer consuming ammonia has done little to hold back the price of that commodity.


Other phosphate producers have raised prices, being hit by higher costs for ammonia, which is required to convert phosphoric acid into ammonium phosphate.


This combined with a shortage of Mississippi phosphate has led to price hikes in MAP and DAP, though these have not yet hit the UK market.


However, the fact that urea cannot currently be delivered into America has led to a short-term downward blip in prices, to our advantage. Russian AN is also competitive.


Unfortunately for them, Midwestern American farmers are reported to have suffered $2bn grain losses on the Mississippi.


This could have a significant positive effect on grain prices closer to home and in turn on the affordability of fertiliser.


In terms of change to prices this week, the impact has been nil but DAPS and MAP prices will soon be on the up.


CURRENT PRICES (£/t)


Great Britain

























Straight


Domestic N (34.5%N) SP5

Nov £158-160

Imported AN (Russian)


£148


Imported urea



£184-190 granular
£170-1755 prills


Liquid UAN
37kg/100litres (29.6%N/t)


No market


TSP (47%P2O5)


£148


Muriate of Potash(60%K2O)


£133



















































Compound


 


Complex


Blended


25.5.5


£153


From £145


15.15.20


£171


 


20.10.10 / 27.5.5


£156


From £149


17.17.17


£179


 


Aftercuts NK


 


No market


27.6.6 (imported)


 


 


32.5.0 (imported)


No market

Autumn grades (PK)

 


£133-135
















Trace elements

Copper, zinc, selenium,
cobalt Iodine and sodium

£11.10/acre pack





Ireland







































Straight and compound


 


Northern Ireland


Republic of Ireland†


Urea

No market No market
CAN £132 €162+

24.6.12 aftercut*


No market


No market


25.5.5


£152


 


27.6.6 complex**


£162


€230-245+ (CCF)
€230-235 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.
*Known as 24.2½.10 blend in the Republic of Ireland
**Known as 27.2½.5 in ROI


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