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| Commentary |
Last updated -
2008-04-14 13:55:15
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Fertiliser Market Update 14th April 2008
Latest news in the fertiliser market surrounds China, with a rumoured export tax on all fertilisers of 135% being introduced (currently 35%) from 1st May. This is an attempt to control inflation within the domestic fertiliser market and further a field. As well as being a large importer of fertilisers it is also a large exporter, particularly of Urea and Phosphates. By imposing this tax on home producers it is hoping to divert more production for own usage. Food security in China is a prime concern with rice prices hitting all time highs and some local shortages occurring.
The immediate impact in International markets was for further price rises on all products as Traders reacted to the news.
In March the Russian government announced Tenders for the mining rights to a region believed to contain as much as 40% of the worlds untapped potash reserves. The successful bidders for the three sections involved all paid amounts substantially over the reserve values set.
Closer to home in the UK, local blender producers withdrew prices on a number of products reflecting the raw material market increases. In particular, Potash has again been affected, with increases expected now in the order of £60/tne to be imposed more or less immediately.
A number of people have also been showing interest in Urea for the new season, mainly due to a shipper trying to liquidate some stock. However, as a result of the recent news in China offers were withdrawn very quickly as aspirations suddenly changed.
With very bullish news affecting most product sectors high prices look set to continue.
Russell Davison
01476 862790
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