Friday, 24 February 2017
Urea price review
We are lifting our urea price by $25 per tonne to $507, effective as of midnight 24 February*.
To date we’ve been able to shelter shareholders from the full extent of the near 40% increase in the USD price for urea, since November, but are now passing on a portion of that cost.
The increase comes off the back of falling global urea prices in 2016, due to increased production capacity, particularly in North America and North Africa. This caused a number of less efficient plants (particularly in China) to close, which saw a reduction in production and ultimately supply.
This combined with seasonal demand, particularly from India, has created a significant upward movement in the USD urea price.
We continue to buy well on the global market and utilise our strong relationships with global suppliers to shield you from volatility as much as we can.
Rest assured that our strong financial performance allows us to continue to invest in infrastructure, develop new technology and deliver sound technical advice to continue to deliver you all year value.
*Bulk product price with 1.5% direct debit discount included ⋅ Excludes GST, and freight & handling charges ⋅ New prices effective 25 February 2017.