8 Jan

DAP Prices Remained Strong in 1st Week of 2018


DAP prices

For the week ending January 5, 2018, DAP (diammonium phosphate) global prices at most locations were flat to positive with the exception of Saudi Arabia. Last week, DAP prices also remained significantly higher compared to levels in the corresponding week in 2017.

DAP Prices Remained Strong in 1st Week of 2018

Weekly movements

Last week, DAP prices in Central Florida rose by as much as 1.4% to $331 per metric ton from our last update at $327 per metric ton two weeks ago. Similarly, DAP prices in the Tampa location rose by 1.3% to $390 per metric ton from $385 per metric ton. In NOLA (New Orleans), the DAP prices rose by 56 basis points to $328 per metric ton.

The DAP prices in China rose by 49 basis points to $407 per metric ton from $405 per metric ton. In India, the DAP prices rose by 25 basis points to $394 per metric ton from $393 per metric ton.

In Morocco, DAP prices moved sideways during the period to $400 per metric ton. In contrast to these locations, the prices in Saudi Arabia fell by 49 basis points to $405 per metric ton from $407 per metric ton.

Yearly movements

DAP prices at the above locations remained significantly higher. For example, prices in China and Saudi Arabia were up by 24% year-over-year, while DAP prices in India were up by 22% year-over-year. In Morocco, DAP prices rose by 22% year-over-year.

In Tampa, DAP prices rose by 21% year-over-year. In NOLA, prices rose by 18% year-over-year, and in Central Florida, prices rose by 14%. The strength in DAP prices remains positive for phosphate producers such as Mosaic (MOS), Israel Chemicals (ICL), and Nutrien (NTR).

However, a spike in natural gas can pressure the input cost for phosphate producers (MOO) just as we saw for nitrogen producers such as CF Industries (CF) and Terra Nitrogen (TNH). Natural gas is a key input for ammonia, which is used in making DAP fertilizers.

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