Thursday, May 19, 2022
The Ukraine War has disrupted global trade flows and none more so than international fertilizer shipments. The UK nitrogen fertilizer market amounts to 2.2m tonnes per year. To put this in perspective, the conflict has resulted in the loss of 25m tonnes of Russian, Belarusian and Ukrainian production. Odessa formerly exported a million tonnes a month to global markets and that has been lost. That supply loss is impacting the global supply balance driving prices to all time highs.
From our market overview, it’s apparent competition from countries that have traditionally sourced Black Sea production from Odessa and export bans from others has made a tight supply situation worse.
Some industrial consumers of urea have adjusted their processes to use agricultural rather than technical grades so there is now increased domestic demand for products that were formerly used by farmers alone.
At Brineflow we have procured a number of fertiliser cargoes for June/July shipment and onward summer delivery to farms at highly competitive prices. Supplies are not unlimited and can be made available only on the strict understanding that we will be able to deliver to installed on-farm tanks promptly when the ships arrive.
Our Forward Point of View
At the time of writing Global shippers have not yet offered terms for autumn or spring delivery but we are in daily touch with our supply partners ready to respond if matters change.
As the season progresses events overseas and out of our control will drive market sentiment and product availability. We anticipate a series of quite self-contained markets that will change on a month-by-month basis.
Security of Supply
Our market overview has highlighted where Nitrasol can help toward solving these problems. Looking ahead, we are currently constructing one of Europe’s largest liquid fertilizer import terminals at our deep water facility in Sunderland to be completed by September 2022.
This takes our UK strategic storage capacity to 60,000 tonnes married with the ability to access new deep ocean primary suppliers in Africa and the Americas away from Putin’s gas and European competition.
Our ability access these new sources and to hold huge stocks in times of market turmoil means that we can be a reliable supply partner for your farm in these unprecedented times.
May 2022 – Huge new Tanks taking shape at our expanding deepwater import terminal in Sunderland