Fertiliser Market Update

Gas prices remain volatile

European natural gas prices continue to see volatility with prices predicted to be firm into quarter 4 and into the new year. Russian shipments via the Nord Stream pipeline is around 20% of capacity. The energy crisis crippling Europe could get worse as we are approaching the winter heating period as Europe is heavily dependent on Russian gas to get through the colder months. Any further disruptions to supply may heighten the risk of blackouts and rationing. Nitrate manufacturers will have seen substantial increases to their production costs and are currently reducing their production capacity and if gas is short over the winter months, we could see forced closures of these plants.

We continue to see ammonium nitrate as premium cost per kg/n over Urea. Urea and Limus treated Urea remains the best source of Nitrogen in our market today. Prices are stable at present, however when demand starts to pick up after harvest, we could see prices rally as replacement values are higher than our current domestic market. Although there is slow trade in the North African Urea market of late, manufacturers have not lowered their prices to stimulate demand.

With all this in mind we are expecting quarter 4 to be a supply challenge for nitrogen products.

We currently have in stock Fertiberia 26N + 37SO3 (Ammonium nitrosulphate compound), its nitrogen content is formed in nitric & ammoniacal nitrogen. Fertiberia 27N + 12SO3 compound contains 50% of the nitrogen in nitric form, with immediate assimilation, and the other 50% in the form of ammoniacal nitrogen, which is more slowly assimilated by the crops.

Please contact the fertiliser department for further details 01243 755630.