Nitrogen business slows down

By Roger Chesher

NITROGEN business is slowing down considerably following the recent high levels of interest.

July and August sales have been very brisk indeed, with the consequence that stocks are now low, always an indicator that prices are unlikely to fall.

Harvest, early planting and holidays in the merchant trade are given as the main reason for the slackening interest, which, interestingly, does not apply to sulphur sales which are said to be “flat out”.

Manufacturers are still focussing on the current August price, offers for which remain open until Thursday 23, but it is becoming clearer that 2/t will be the likely price rise into September.

PK business is picking up, with prices varying from 109-113/t, but remember that the really discounted prices only apply for full artic loads to one location.

While sales of existing stocks of imported ammonium nitrate continue at keen prices, importers will not bring in new stocks until business picks up again after harvest.

The slow but steady decline in fertiliser use in the UK is illustrated in the recently published Fertiliser Manufacturers Association Fertiliser Review, which also highlights the much more dramatic decline in the use of lime since 1998.

This decline is worrying, as fertiliser efficiency is greatly reduced on acid land.

Those concerned about recent price rises of nitrogen fertiliser would also be interested to note that, while the nitrogen price index kept pace with fuel prices from January 1994-1999, since then it has been significantly behind.

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