Blended compounds start to move

By Roger Chesher

AT least one major US ammonia manufacturer has resumed production this week, helping to fulfil demand over there.

Whether it will be sufficient to stem the flood of imports into the USA and away from our shores remains to be seen, but it is too little too late to have a major impact on our market.

Cargoes beyond February are still hard to contract, and are at high prices, but at least there are now signs that more economical cargoes may become available towards the end of our season.

Domestic producers continue to maintain their published February nitrogen and compound prices.

The market is still extremely quiet on the nitrogen front, but blended compounds are beginning to move. Their price seems to be around 7 below complex compounds.

The big players are becoming extremely nervous at the size of the logistical problem which faces them if the market is to be fully satisfied.

There seems very little point, other than cashflow, to hang off from buying fertiliser now.

The risks of not getting the right material exactly when you need it are quite real now.

As previously mentioned, the biggest changes on the horizon now are in the supply chain.

The implications of a large Terra supplier, Cargill, now joining a large Hydro supplier, Banks, are yet to be felt.

More mergers, losses or rationalisations in the route to market are inevitable

CURRENT PRICES

IRELAND