DAP Prices Rose Due to Supply Concerns after Hurricane Irma

In the week ending September 22, DAP (diammonium phosphate) prices experienced an impressive increase week-over-week. According to The Mosaic Company (MOS), the rally in DAP prices was fueled by limited availability from China and supply issues due to Hurricane Irma in the US.

Last week, DAP prices in the US rose across all three locations in the above chart. In NOLA (New Orleans), DAP prices rose 3.5% week-over-week to $305 per metric ton from $295 per metric ton in the previous week. Last week, prices in NOLA rose 6% YoY (year-over-year) from $287 per metric ton in the same week in 2016.

Similarly, prices in Central Florida rose 3.2% week-over-week to $322 per metric ton from $312 per metric ton a week ago. Prices in Central Florida rose 8% from $298 per metric ton. Prices in Tampa rose 2.1% week-over-week to $341 per metric ton from $334 per metric ton. Last week, the prices in Tampa rose 1% YoY.

In Morocco, DAP prices rose by 57 basis points week-over-week to $350 per metric ton from $348 per metric ton and 1% YoY.

Players (MXI) like Mosaic (MOS), Israel Chemicals (ICL), PotashCorp (POT), and Agrium (AGU) have been hoping for a rise in phosphate prices.

In the next part, we’ll discuss MAP (monoammonium phosphate) fertilizer prices in Brazil.