Hydro/Kemira issue baseline price


Thursday, 10 June, 1999

SALES of fertiliser, that is product actually invoiced rather than "booked", have this week been largely restricted to the aftercut market where prices have been stable.

Merchants and distributors are, however, more interested in the price of nitrogen for the forthcoming season.

Hydro and Kemira are reported to have issued terms which should allow larger orders of nitrogen to be delivered to farm at £92 +, for payment in November.

Both companies will be doing their utmost to make these terms stick as they merely reflect the current rock bottom prices in the market place and hardly reflect aspirations for a more "realistic" price for what is, after all, top quality SP5 material.

Terra, the biggest player, have yet to show their hand and could well be revealing their terms at a press conference scheduled for Wednesday morning at Cereals 99.

The big three are all represented at the event which will also feature a fertiliser focus area organised by the FMA.

Merchants meanwhile will sit and wait until then.

Over capacity has resulted in yet more rationalisation in the industry with the announcement by Kemira that it is to close the NPK fertiliser granulation plant at Pernis in the Netherlands.

This means that the nitric acid and ammonium nitrate plants will also go, removing an estimated 200, 000 tonnes capacity of finished product from the market place.

With high production costs this is a sensible move by Kemira who should have ample capacity elsewhere to fill the shortfall.

The sulphuric acid plant, the phosphoric acid plant and ammonium phosphate granulation will continue at Pernis.

CURRENT MARKETS

 

 

20.10.10

complex/blend*

KN

KNS

20.5.15

AN (Import)

AN (Domestic)

England/Wales Grassland Markets

110-115/

105-110

90-92

90-92

90-92

80-84

88-92

England Arable Markets

No Market

93-96

93-96

93-96

80-81

Not active

Scotland

108-112/

103-108

88-95

88-95

88-95

80

90-93

*Complex fertilisers are those where typically all nutrients are combined in one granule.

 

IRELAND

 

CAN

27.6.6 complex

25.5.5 complex

24.6.12 complex

Northern Ireland

96-100

128-130

118-120

125-128

 

CAN

27.2Omega.5

18.6.12

10.10.20

Republic of Ireland*

108-112

140-145

143-150

156-160

*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..

*Prices in the Republic are IR£

FORTHCOMING MARKETS

Anticipated general prices from 01 June

AN (Import)

AN (Domestic)

N/S (High S)

N/S (Low S)

PK. 0.24.24

78-80

92

92

88-92

120

 

BACKGROUND MARKET

Products not currently traded in volume

0.24.24

15.15.20

17.17.17

122

130-135

135-140

 

Note All illustrated prices are based upon 20 tonne loads for immediate payment. Prices for smaller loads and those with credit terms will vary considerably.

Source: Bridgewater Associates.


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