Market favours early buyers

By Roger Chesher

ALTHOUGH the market continues to favour the early buyer well over 60% has yet to be committed, shows an analysis by Terra, the UK nitrogen leaders.

This is in spite of the fact that prices are moving steadily upwards by 2/t per month, and, if last year’s pattern is repeated, we could experience a bigger hike around January.

However, this time last year, domestic nitrogen was priced at 122/t, 8 more than the current price of 114/t.

But it would almost certainly be wrong to conclude that prices will ease in the spring because the annual price has dropped.

This is underlined by a steadily increasing price for gas, the feedstock for ammonia production in the UK, which has moved from 18.5p/therm in July to a forward price of 24.4p/therm for December.

With import cargoes now on the high seas it would appear that the bulk of imported AN supplies will be available after Christmas.

Urea imports, on the other hand, are significantly ahead of the position in 2000.

The compound market remains competitive, particularly in the South West, with active discounting in some regions.

But, as with the nitrogen market, despite the current pre-Christmas activity the bulk of the business will be in the spring.

IRELAND