Nitrogen price hike stands firm

By Roger Chesher

WITH many people in the fertiliser industry still on holiday, and farmers recovering from the freeze, it is not surprising that little, if any, product is currently moving on to farm.

The big price hike of 6, making domestic nitrogen 130/tonne, stands firm and inevitably there is a fair degree of price resistance in the marketplace, with an increased interest in imported material.

Imported AN is around 112/t on-farm where available, but with the Baltic countries still enjoying their winter break, further supplies of bagged material are not expected until February.

The price could well be higher then, as urea prices have shot upwards by $20/t in the last two weeks, mollified somewhat by the Sterling exchange rate going from $1.45 to $1.51.

World nitrogen producers are therefore slow to offer forward prices in the hope that AN will rise with urea.

February should see a change in the anti-dumping levy rate which European producers would like to see increased, but with pressure from importers and the farming lobby it could well stay exactly the same.

Most players in the industry agree that the UK manufactured nitrogen prices will stick, but with farmers holding off in the hope of a price fall, deliveries will become more difficult.

The spring logistical situation seems to get worse each year and, while this year there is little doubt all product will be delivered, there is no guarantee it will arrive when farmers actually want it.

CURRENT PRICES

IRELAND