The long-awaited news of a urea tender was finally announced over the weekend. Rashtriya Chemicals and Fertilizers (RCF) announced the fresh urea tender, due to close on 22nd March for shipment up to the end of April. Surprisingly given the rate of price increases experienced, this is the first tender since early December 2020, since that time prices have risen between $80-90 per tonne. Publishing a tender does not always result in tonnage being bought, and it will be interesting to see how much volume will be covered, given that many traders have thought we were pretty much at the top of the market. For example, Egyptian urea traded at $400 per tonne FOB recently, this would place Granular Urea bags delivered to farm in the UK at over £ 350.
Nitrasol Terminal North
Great progress is being made on the new Nitrasol North Terminal being developed in Sunderland due to open later in 2021, as can be seen in the photograph below. This investment will give great confidence over security of supply to growers in northern England considering making the switch to liquid fertilisers. Importantly this also gives competition and more options for current users. If you are interested in a discussion on converting to liquid fertilisers please call Russ Davison 07825 925485, or for more details of this exciting project go to https://nitrasol.co.uk/
UK Ammonium Nitrate (A.N) levels continue at the reduced level introduced by CF on 4th March. Yara in France increased its A.N levels again last week, and with the potential impact of the new Indian urea tender on broader nitrogen levels means this is unlikely to be available for much longer.
Economic Data as at close on Friday 12th February v (5th February 2021) £ = $ 1.3921 ($1.3831) £ = € 1.1646 (€ 1.1604) Crude Oil = $ 69.17 ($ 69.13) Natural Gas =$ 2.66 ($2.75) Please treat pricing on graphs as a guide, please use quote request form for an up-to-date price.