DAP (diammonium phosphate) prices have moved unfavorably for producers (XLB) such as Mosaic (MOS), Agrium (AGU), PotashCorp (POT), and Israel Chemicals (ICL) in recent months. Last week, which ended on August 25, 2017, was a continuation of the lackluster momentum for DAP prices. Let’s dig a bit deeper into price movements by location.
Overall, DAP prices at the above four locations moved sideways week-over-week. In the North American location, at Tampa Bay, prices remained unchanged week-over-week at $336 per metric ton, making it the third consecutive week for DAP prices to move sideways. Year-over-year, prices at that location fell 1.0% last week.
Similarly, prices at the Central Florida location remained unchanged at $299 per metric ton week-over-week. It was also the third consecutive week for prices there to move sideways. Year-over-year, prices at that location were flat last week.
In the NOLA (New Orleans) region, prices also moved sideways to $291 per metric ton from a week ago. Year-over-year, prices at NOLA fell 2.0% last week.
At Morocco, which has the largest reserves of phosphate rock, prices remained unchanged at $349 per metric ton. Prices moved 1.0% higher year-over-year.
Considering that DAP prices have stayed at nearly the levels they were a year ago, it should not be surprising that the phosphate segment has suffered so far this year.
Next, we’ll continue to look at phosphate fertilizers by looking at MAP (monoammonium phosphate) price movements.