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What You Probably Don’t Know about the Cost of Diammonium Phosphate


Apr. 25 2016, Published 5:08 p.m. ET

DAP prices

Ammonia is also used to make phosphate fertilizers such as DAP (diammonium phosphate) and MAP (monoammonium phosphate). Ammonia and natural gas prices thus impact phosphate fertilizer producers like Mosaic (MOS), Israel Chemicals (ICL), and PotashCorp (POT).

Ammonium phosphates are the most widely used phosphate fertilizers globally. DAP is used the most in phosphate fertilizers, according to Mosaic. Notably, the VanEck Vectors Agribusiness ETF (MOO) invests about 2.9% of its portfolio in Mosaic and 3.8% in Agrium (AGU).

What You Probably Don't Know about the Cost of Diammonium Phosphate

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Diammonium phosphate

For the week ending April 22, 2016, the average price of DAP in the US Corn Belt remained unchanged at $353 per metric ton, or $390 per short ton, from the previous week. DAP’s average price in China also remained unchanged at 2,700 Chinese yuan per metric ton, or $416 per metric ton. The average DAP price at US Gulf NOLA (New Orleans) for the week ending April 22 also remained unchanged at $300 per metric ton, or $330 per short ton.

On the other hand, the average realized price for DAP at Port Tampa Bay declined slightly to $357 per metric ton, as compared to $359 per metric ton one week previously.

We should note here that Mosaic, one of the largest producers of DAP, is converting its DAP facilities to its MicroEssentials products. According to the company, these products command higher premiums. Mosaic’s management says that MicroEssentials products generate $40 more in revenue per unit than DAP.

In the next part, we’ll turn our attention to the second-most important phosphate fertilizer: MAP (monoammonium phosphate).


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