Committed to providing in season fertiliser supply

With the current fertiliser pricing levels reflecting historical highs and being largely driven by global factors, CBH Fertiliser is working hard to ensure security of supply and to challenge input costs by setting local pricing benchmarks for shareholder benefit.

This was enabled with early procurement and shipment of urea to ensure warehouses are full at the right time in season and we are happy to share that our second shipment recently arrived in Esperance, Geraldton and Kwinana with the third vessel currently loading, and a fourth set to arrive in June. 

Project updates

Last month our new 25,000 tonne fertiliser storage facility in Esperance was completed with the latest Yargus blending equipment installed. In addition, CBH has installed its own weighbridge and front end loader at site for greater control. This has allowed for the successful and accurate blending of multiple products plus specialities such as liquid copper, zinc and fungicides for the 2022 seeding season.

Our new Kwinana development project is also progressing well with development currently sitting at 30 per cent with concrete works completed for the UAN tanks and warehouse foundations. The UAN pipeline installation has begun and will follow the Kwinana Grain Terminal berth where vessels will discharge. We expect the facility to be operational in the first half of 2023 and look forward to bolstering our granular and liquid offering across a wider catchment for all growers to enjoy. 

Image caption: live photo from our Kwinana Fertiliser expansion development 

Market Update

Phosphates:

• India has purchased DAP at similar levels to Q1 which will add some support to pricing, global markets are aligning which helps settle prices
• Many markets are looking to buy, India, Bangladesh, Pakistan, Latin America and Europe
• Chinese government announced continued strict inspection clauses on exports however regional loop holes exist which should increase exports
• Russian product is working to India and Latin America however is being resisted in most other countries
• Expect local AUD prices to remain north of $1600 per metric tonne during May to July

Nitrogen:

• Indian officials have asked for 1.5 million tonnes of Urea with 2.6 million tonnes offered overnight from producers and traders
• All markets are keenly awaiting the final prices to set benchmarks for the next 6-8 weeks
• Buyers are ready across Australia, Mexico, Brazil and South East Asia for June
• Russian product will not be accepted into India however Central America and Brazil will accept
• Expect local AUD prices to fluctuate in a range of $1250 - $1300 per metric tonne during May, June

Potash:

• Global producers continue to push prices higher on the back of Russia and Belarus being sanctioned and removing 30% of global export trade from the market
• Bangladesh concluded a tender for Standard MOP at levels that will dictate benchmarks for granular
• Expect local AUD prices to move above $1500 per metric tonne during May to July