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For the first time in 13 months, Nitrogen (N) fertiliser has fallen below the £600/t barrier.
The latest price quotes for CAN have eased to £595/t, although some merchants are still quoting in the region of £605/t.
Urea has seen an even greater price drop. Quotes were down to between £650/t and £660/t earlier this week, with discounts available on larger quantities and payment on purchase.
It means that urea has fallen £100/t since the beginning of February, whereas CAN has only seen a £40 to £50/t price correction.
At these prices, urea is significantly better value than CAN (£1.43/kg of N versus £2.18/kg of N), but with the usual caveats around applying urea in appropriate conditions.
Grassland compound fertilisers, such as 25-5-5, have also seen prices trending downwards, with quotes this week generally around the £650/t mark. Similar products with sulphur and sodium added will cost £10/t more.
Pressure
Fertiliser manufacturers and importers based in Ireland have come under pressure in recent weeks to lower prices in line with Britain, where urea can currently be purchased for around £580 to £590/t, with forward prices for delivery this summer now below £500/t.
Gas, which is a key component in fertiliser manufacture, has consistently fallen in price over the winter, with the European market now at an 18-month low.
When prices shot up in 2022 it led to a 70% reduction in fertiliser production capacity across Europe. But with energy prices trending downwards, these facilities are now back in operation and this should increase supplies coming on the market this spring, further easing prices.
Cautious
However, there is stock in the system made when gas prices were still high, and with the market trending downwards, local merchants are cautious about when to enter the market.
After a slow start to the year, there is an increase in enquiries for nitrogen, but merchants don’t want to end up in a situation where they are carrying large quantities of over-priced stock.
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