Phosphate Prices on the Rise? Last Week’s Prices in Review
Last week was mostly mixed for DAP (diammonium phosphate). 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 ended January 13, 2017, DAP price movements were mostly positive compared to the previous week. Prices in the US Gulf NOLA (New Orleans) rose 1.6% to $311 per short ton ($284 per metric ton) week-over-week. DAP prices in Tampa Bay rose 94 basis points to $321 per metric ton from $318 per metric ton the week before. Similarly, DAP prices in Central Florida rose 63 basis points to $317 per short ton ($287 per metric ton) week-over-week.
YoY (year-over-year), average DAP prices at the above three locations fell an average of 16.4%. 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 there rose 90 basis points week-over-week to $337 per metric ton. Prices fell ~24.0% 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 fell 2.1% to $94 per metric ton week-over-week. They were trading ~24.0% lower YoY.
In the next part, we’ll look at MAP prices in more detail.