uploads///Phosphate Capacity Additions

A Near-Term Outlook for Phosphate Fertilizers’ Capacity Additions

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Dec. 4 2020, Updated 10:52 a.m. ET

Phosphorous fertilizers

Phosphorous fertilizers such as DAP (diammonium phosphate) and MAP (monoammonium phosphate) are common phosphate fertilizers that are used globally.

Earlier, we discussed that nitrogen fertilizers are expected to see the largest capacity additions in 2017. For phosphorous fertilizers, 2018 will be the year in which the biggest capacity additions will occur, according to PotashCorp (POT).

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Capacity additions

Looking at the chart above, we can see that 2017 will have more capacity additions than the previous four years. In 2017, China is expected to be the biggest contributor to phosphoric acid capacity additions, followed by Morocco and the Middle East.

These three countries will also continue adding capacity in 2018, with the largest capacity additions coming from the Middle East, followed by China and Morocco. Morocco has the largest reserve of phosphate rock, which is the key input material required for phosphate fertilizers. In fact, capacity additions in Morocco are expected to see additions from 2018 to 2021.

According to PotashCorp, these capacity additions are expected to take place among low-cost producers (XLB). Israel Chemicals (ICL) is one of the largest players in the Middle East, while The Mosaic Company (MOS), Agrium (AGU), and PotashCorp also supply phosphate fertilizers.

Next, we’ll conclude this series with an outlook on capacity additions for potash fertilizers.

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