Last week was broadly negative for DAP (diammonium phosphates). The median DAP prices fell 46 basis points week-over-week in the locations below.
Phosphorus fertilizers (IYM) 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).
For the week ending November 25, DAP price movements were broadly flat to negative compared to the previous week. DAP prices in Tampa Bay were flat at $322 per metric ton, while prices at the US Gulf NOLA (New Orleans) also fell last week. In New Orleans, DAP prices fell to $268 per metric ton from $270 per metric ton a week ago.
Similarly, DAP prices in Central Florida also fell 62 basis points week-over-week to $318 per short ton or $288 per metric ton. YoY (year-over-year), the average DAP prices at the above three locations fell 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 rose week-over-week to $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.