Why Did Phosphate Prices Fall Last Week?
Last week was broadly negative for DAP (diammonium phosphate). Median DAP prices fell by 81 basis points week-over-week in the locations below.
Phosphorus fertilizers (MXI) are becoming more important as awareness of balanced NPK (nitrogen, phosphorus, and potassium) application fertilizers grows. The most common phosphorus fertilizers include ammonium phosphates such as DAP and MAP (monoammonium phosphate).
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For the week ending December 2, DAP price movements were broadly flat to negative compared to the previous week. DAP prices in Tampa Bay fell 1.2% to $318 per metric ton, while prices in the US Gulf NOLA (New Orleans) also fell last week. In New Orleans, DAP prices fell by 68 basis points to $265 per metric ton from $267 per metric ton a week ago.
Similarly, DAP prices in Central Florida fell by 94 basis points week-over-week to $315 per short ton or $285 per metric ton. YoY (year-over-year), the average DAP prices at the above three locations fell by an average of 21%. In North America, Mosaic (MOS) is one of the largest phosphate producers. PotashCorp (POT), Agrium (AGU), and Israel Chemicals (ICL) also produce and distribute phosphate fertilizers.
Morocco has the largest phosphate rock reserves. Average prices were flat week-over-week at $335 per metric ton. Prices in Morocco fell ~26% YoY.
Ammonia is a feedstock for producing DAP and MAP. Ammonia, natural gas, and phosphate rock prices impact phosphate fertilizer producers. Last week, phosphate rock prices in Morocco remained flat at $96 per metric ton. Phosphate rock prices were trading ~22% lower YoY.
In the next part, we’ll discuss MAP prices in more detail.