Reading Phosphate Price Realizations in 2Q17: 3 Fertilizer Giants Compared
Phosphate prices, like nitrogen prices, remained weak for most producers in 2Q17. The weakness in phosphate prices resulted from weak demand and capacity pressures. Below, we’ll discuss how phosphate prices fared for the three fertilizer companies who produce it.
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Overall, phosphate prices for the three companies in the chart above fell by a median of 6% YoY (year-over-year). PotashCorp’s (POT) price realization for phosphate fertilizers in 2Q17 fell ~15% YoY to $337 per metric ton, down from $397 per metric ton in 2Q16.
Agrium’s (AGU) wholesale phosphate prices fell 6% YoY to $493 per metric ton, down from $526 per metric ton in 2Q16. Remember, we’re only taking the wholesale prices for Agrium, which helps us compare apples to apples with other North American companies (XLB) that sell only wholesale. Israel Chemicals (ICL) is a producer outside of North America.
Mosaic (MOS) was hurt the least with its phosphate prices falling only ~2% YoY to $336 per metric ton, down from $343 per metric ton in 2Q16.
You can track fertilizer prices weekly at Market Realist, starting with the latest report, Fertilizer Stocks See Red in Week Ended August 11.