No cheap nitrogen on the horizon

By Roger Chesher

ANY hopes of cheaper nitrogen this spring have evaporated, as the first firm offers of imported ammonium nitrate beyond February have been received.

At 113-119/t CIF (carriage, insurance and freight) to UK ports, by the time this is unloaded, transported and delivered with a margin there will be precious little difference from the price of domestic material.

Much of the imported nitrogen currently in the UK is now sold, but not yet delivered.

It will go on to farm around 120/t, bringing the differential back to 10 from todays UK nitrogen price.

The reason for the hike in imported material is the massive rise in gas prices in America, which makes the USA a very attractive market for imports.

Ammonia in America last year was $150/t, but has now just been delivered at $290/t CIF.

If importers are to secure the tonnes needed in the UK for February and March, must they take it at these new high prices?

There is no doubt that the strong demand for fertiliser globally is having a real impact on our prices.

Exporters will do their best to maximise revenue from these shores, but as more offers become available one hopes that the import price may fall back a little from the domestic 130/t, which rises to 136/t in April.

UK producers could well follow global trends and raise prices even further.

This is unlikely, providing they can cover any increases in feedstock costs, but pressure on haulage could see an extra 2 around February or March.

There are very few days left to buy nitrogen before the price goes up again.

CURRENT PRICES

IRELAND