DAP Prices See a Mixed Week for the Week Ended August 5
Ammonium phosphates such as DAP (diammonium phosphate) and MAP (monoammonium phosphate) are the most widely used phosphate fertilizers globally.
Since ammonia is a feedstock for producing DAP and MAP, ammonia and natural gas prices and phosphate rock prices affect phosphate fertilizer producers such as Mosaic Company (MOS), Israel Chemicals (ICL), Agrium (AGU), and PotashCorp (POT).
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In the week ended August 5, 2016, the movement in average prices for phosphate fertilizers was mixed week-over-week. DAP in the Corn Belt was flat at $317.5 per metric ton compared to the previous week. Current prices continue to be at their lowest levels since November 2011. Prices have fallen by 26% YoY (year-over-year).
Prices also moved sideways at Port Tampa Bay last week. DAP prices stood at $340 per metric ton. In contrast, DAP prices at the US Gulf NOLA (New Orleans) rose by 1% to $286 per metric ton compared to the previous week. YoY prices at Port Tampa Bay and the US Gulf fell by 26% and 28%, respectively.
However, average DAP prices in China fell to 2,669 Chinese yuan per metric ton last week from 2,770 Chinese yuan per metric ton in the previous week. Current DAP prices in China are well above their low point of 2,491 yuan from two years ago.
In the next part of this series, we’ll turn our attention to the second most important phosphate fertilizer: MAP.