Makers wait for Kemira compound price

By Roger Chesher

AS reported last week, the UKs major manufacturers are waiting upon Kemira to publish compound prices, which should happen on Friday or early next week.

The warning of higher prices – based on increases in phosphate costs – still applies, but TSP on-farm is not currently as high as the “rogue” price of 180/t recently reported.

140/t is nearer the mark, with MAP and DAP still around US$200-210/t CIF.

We should expect to see a 25.5.5. complex compound priced near to the nitrogen price, i.e 120/t delivered to farm in October, and priced around 134/t in March.

This is some 8/t higher than the summer price but it is now too late to buy as the current price list has been withdrawn.

The compound market is currently in limbo with some manufacturers only offering arable grades until the new prices are set.

Much of the current debate centres on exactly when the major hike in prices should occur.

It looks as though this will happen in January for nitrogen, but could well be later than expected for compounds, possibly as late as February or March to stimulate early buying.

With the market in anticipation, very little is moving today, either in Britain or Ireland, so the price table is somewhat academic.

Imports remain low and despite the value of the Pound, prices seem to be at parity with other parts of Europe, so there is little incentive to import anyway.

If manufacturers get the price structure right, we should start to see compounds moving into merchants or farm store next week.

• Compound cost up as nitrogen stay steady, FWi, 22 September, 2000
  

IRELAND