DAP and MAP
Ammonium phosphates such as DAP (diammonium phosphates) and MAP (monoammonium phosphates) are the most used phosphate fertilizers on a global level.
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).
In the week ending July 22, the movement in average prices for phosphate fertilizers remained flat week-over-week. DAP in the Corn Belt was $317.5 per metric ton. It moved sideways compared to a week ago. Current prices continue to be at their lowest levels since November 2011. Prices have declined by 25% YoY (year-over-year).
The average US Gulf NOLA (New Orleans) DAP prices also moved sideways to $281 per metric ton from the previous week.
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 DAP prices at Port Tampa Bay fell by an average of 28% 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 the next part of this series, we’ll turn our attention to the second most important phosphate fertilizer, MAP.