Comparing Phosphate Prices for Key Players in North America

Ammonium phosphates

Ammonium phosphates are the most widely used phosphate fertilizers in the world. DAP (diammonium phosphate) is the most used among phosphate fertilizers, according to Mosaic Company (MOS)—one of the largest phosphate fertilizer producers (SOIL) (ICL).

Over the past few quarters, DAP prices have also started on a downward trend—similar to nitrogen and potash fertilizers, which we discussed in previous parts of this series. Below, we’ll discuss how DAP prices performed in 1Q17 for some of the largest producers.

Comparing Phosphate Prices for Key Players in North America

Average realized prices

Average realized phosphate prices fell 15% for the above three companies YoY (year-over-year) in 1Q17. Average realized prices for DAP were the lowest for Mosaic during the quarter. In 1Q17, Mosaic’s average selling price for potash fell 8% to $327 per metric ton—compared to $355 per metric ton in 1Q16.

Agrium’s (AGU) average realized phosphate prices fell ~21% YoY to $466 per metric ton in 1Q17 from $589 per metric ton in 1Q16. PotashCorp’s (POT) average realized prices fell 15% YoY to $369 per metric ton from $436 per metric ton.

Why prices fell

Reasons highlighted in the previous quarter’s earnings call continued to cast a shadow on phosphate prices in 1Q17. Phosphate prices continue to face downward pressure as a result of weak demand and excess supply on a YoY basis.

Next, we’ll discuss the phosphate segment’s gross margins.