In the week ending October 13, 2017, the DAP (diammonium phosphate) prices were broadly mixed week-over-week. Unlike the movements in urea and potash prices, phosphate prices have seen the weakest momentum in 2017.
Overall, the movements in DAP prices at the above four locations were broadly mixed last week. In North America, the DAP prices fell week-over-week. In Central Florida, the DAP prices fell as much as 1.4% week-over-week to $318 per metric ton from $322 per metric ton. In NOLA (New Orleans), the prices fell by 62 basis points week-over-week to $291 per metric ton from $293 per metric ton. In Tampa, the DAP prices fell by 29 basis points week-over-week to $344 per metric ton from $345 per metric ton.
In contrast to the above three locations in North America, the DAP prices in Morocco rose as much as 1.7% week-over-week to $366 per metric ton from $360 per metric ton.
Overall, the growth in DAP prices YoY (year-over-year) continues to remain in the single digits at the above four locations. In Central Florida, the DAP prices were 6% higher YoY last week, while the prices in NOLA and Tampa were each 3% higher YoY. In Morocco, the prices were 7% higher YoY.
The weakness in phosphate prices had a negative impact on the phosphate segments of companies (MXI) like PotashCorp (POT), Mosaic (MOS), Agrium (AGU), and Israel Chemicals (ICL). The prices were driven lower primarily due to excess capacity. According to PotashCorp, more capacity is expected to come online in Morocco and Saudi Arabia.
In the next part, we’ll discuss MAP (monoammonium phosphate) fertilizer prices.