Last week was mostly mixed for DAP (diammonium phosphate). Phosphorus fertilizers (XLB) 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 January 6, 2017, DAP price movements were mostly mixed compared to the previous week. DAP prices in Tampa Bay remained unchanged at $318 per metric ton. Similarly, DAP prices in Central Florida remained unchanged at $315 per short ton week-over-week, while prices in the US Gulf NOLA (New Orleans) rose by 66 basis points to $277 per metric ton week-over-week.
YoY (year-over-year), average DAP prices at the above three locations fell by an average of 17.1%. 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 fell by 30 basis points week-over-week to $334 per metric ton. Prices in Morocco fell ~25.0% 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 remained flat at $96 per metric ton. They were trading ~22.0% lower YoY.
In the next part, we’ll look at MAP prices in more detail.