Spanish closures cut nitrogen oversupply
By Roger Chesher
WITH further announcements awaited from Kemira, Hydro and probably GP around the middle of the month, news is starting to emerge of plant closures on the European mainland.
Production of 75,000t of urea has ceased at the Huelva plant owned by Fertiberia in Spain, which has also announced the forthcoming closure of 260,000t of nitrate capacity at Caragena.
This means the loss of a further 170 jobs in the hard-pressed fertiliser industry.
While Spain seems a long way from our home markets, the announcement is a significant contribution towards reducing the gross oversupply of nitrogen in Europe as a whole.
Nearer home, BASF have announced that production of 400,000 tonnes of calcium ammonium nitrate (CAN) and magnesium ammonium nitrate will cease sometime in the year 2000 at Ostend.
True rationalisation rather than cost cutting is finally really starting to happen in Europe.
Meanwhile, farm and raw material prices have changed little to date but there are some increases.
Energy prices have resulted in a sudden increase of $12/t on Lithuanian UAN solution and imported granular urea has firmed from £90-92/t to £92-94/t.
Kemira has withdrawn distributor allowances as planned, which means that Nitraprill should be £90/t on farm if the merchant is to make a profit.
For large orders, some merchants have been willing to forgo margin and have been operating below £87/ t for domestic nitrogen.
Domestic AN is also reportedly being sold in the arable east as “import replacer” in non branded bags, but it would be wrong to assume that this is SP5 quality.
Spring NPK is only just beginning with complex compound 20.10.10 priced around £107-110.
Blended compounds will not normally enter the market until January.
CURRENT MARKETS
Immediate delivery N
(SP5)
January/February delivery N pay April
Imported urea
Imported N deliver December
Imported 0.26.26
Domestic 0.24.24 blended
Liquid N, 37kg/100l or 29.6% N/t
£84-87
£90
£92-94 granular/
&prilled – no market
£74-78
£None available
£112-115
£95/100,000 litres or £76/t
NPK
January/February, pay April
Complex 25.5.5
100-103
15.15.20 pre-Christmas (complex)
127
20.10.10/29.5.5 February
107-110
17.17.17 February
130
N/S (High S) | N/S (Low S) | TSP (47% P2O5) | Muriate of Potash (60% K2O) |
87 | 87 | 125 | 120 |
IRELAND CAN 0.23.24 0.16.36 Complex compounds
No urea market at present
Imported CAN
Northern Ireland
Prices withdrawn
No market
132
132
No market
CAN | 0.10.20 | Urea, imported | 0.7.30 | |
Republic of Ireland* | No market | 140 | 130 | 140 |
*Note in the Republic of Ireland nutrients are expressed as elements not oxides. Analyses will not be directly comparable with those used in the UK.. *Prices in the Republic are IR£ Note All illustrated prices are based upon 20 tonne loads for immediate payment. Prices for smaller loads and those with credit terms will vary considerably. Source: Bridgewater Partnership