Have DAP Prices Stabilized in Recent Weeks?
Ammonium phosphates such as DAP (diammonium phosphates) and MAP (monoammonium phosphates) 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 (MOS), Israel Chemicals (ICL), and Agrium (AGU).
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In the week ended July 29, 2016, the movement in average prices for phosphate fertilizers remained flat week-over-week. DAP in the Corn Belt was $317.50 per metric ton. Current prices continue to be at their lowest levels since November 2011. Prices have declined by 24% YoY (year-over-year).
Prices also moved sideways at Port Tampa Bay last week. DAP prices stood at $340 per metric ton. Similar to nitrogen fertilizer prices, US Gulf Coast NOLA (New Orleans) DAP prices at Port Tampa Bay fell an average of 27% YoY.
Average DAP prices in China also remained flat last week at 2,670 Chinese yuan per metric ton. Current DAP prices in China are well above their low point of 2,491 yuan two years ago.
In contrast to prices at the above three points, the average US Gulf NOLA DAP prices rose 0.65% to $283 per metric ton from the previous week.
In the next part of this series, we’ll turn our attention to the second-most-important phosphate fertilizer: MAP.