Short-term uplift forecast for fertiliser prices by traders

There has been some more support for UK fertiliser markets during the past week but, overall, they remain fairly “in check”, with prices still almost half where they were this time last year.

Supply is one of the key drivers behind the most recent price increase, with some exporting countries reducing output.

A second driver is disruption to shipping routes, with conflict in the Middle East causing some delays to global movement of supplies through the Red Sea.

See also: NFUS to take fertiliser companies to CMA over profiteering

Outlooks suggest prices should remain relatively firm for the next few months, but the industry is forecasting that it could drop back later in the spring.

This is partially due to CF Fertilisers recently announcing a new UK ammonium nitrate price offer for March and April which is below the current imported price.

Traders at Frontier said: “In the UK, we have seen the urea price firm this week, on the back of global buying.

“Due to earlier low demand, nitrogen factories are still currently halted or mothballed in Europe.

“Even though business in Europe has picked up in the past week, there are no signs that these factories will restart. This means supply to the UK remains tight and will stay so as demand picks up – this could also firm up prices.”