FERTILIZERS

UREA

UREA prices have remained relatively stable in the past few months, after a decline in December and January, with steady demand in Asia.

A significant volume was booked for Iran from the Black Sea region, 195 000 tonnes. Pakistan bought 400 000 tonnes for May/early June shipment. Bangladesh importers schedule a supply of 100 000 tonnes prilled urea in anticipation of summer planting. In the United States the market is still quiet.

Generally the supply/demand balance for May/June appears tight and prices may remain volatile.

DAP

The International DAP market and prices have remained relatively inactive in the past several months, due to limited production in the United States and continued absence of changes in demand.

In April, however, United States producers secured business totalling almost 1 million tonnes for an April/May shipment to India and China.

On the demand side, Iran may merge requirements under the old, lapsed DAP tender with another that closes at the beginning of May, bringing total potential business there to 90 000 tonnes. Turkey will return to the market probably in late May/June and there is further business in Latin America.

On the supply side, suppliers from the Russian Federation and Jordan are heavily committed to mid-year through to mid-year. The DAP market appears to be on a firm footing for the next few months.

MOP

MOP prices remained stable during the last months and the uncertain international market is

 dominated by the absence of a concluded supply arrangement for the Chinese market in 2006.

India entered the market at the end of April.

Demand in north Europe is contracting and North African markets are quiet.

North American suppliers schedule significantly reduced production in the near future.