Delayed Demand Pressures Global Di Ammonium Phosphate Prices in October ending 2022
- 31-Oct-2022 4:25 PM
- Journalist: Timothy Greene
Di Ammonium Phosphate (DAP) prices in the international market were evaluated at lower pricing levels during the final week of October, as raw material costs have also declined. The slowing of the fertilizer trade, procurers’ unwillingness to make purchases, and a delay in demand from the importing nations were among the major drivers of this price decline in global DAP market. Fertilizer prices have recently been exceedingly volatile and have fallen from their recent highs. They are nevertheless high as compared to the prior year.
Di Ammonium Phosphate (DAP) prices in the US market were estimated to have decreased by 2%; in the most recent week, the retail price of DAP was USD 930/tonne. ChemAnalyst's pricing analysis determined that DEL Illinois rates were USD 884/MT on the 28th of October.
Processed phosphates are having difficulties in the South American market; as a result, Brazil's DAP prices have fallen again and are currently trading in the USD 600–640 CFR band. As demand in Brazil remains delayed, the price of Mono Ammonium Phosphate (MAP) falls to USD 600-650/tonne CFR west of Suez. Brazil, as of now, is not very interested in importing DAP, although its price is very low in the global market.
The final week of October saw a slowdown in China's Di Ammonium Phosphate (DAP) market following the National Day holiday. Demand was greatly aided by the need for downstream phosphate fertilizer raw materials. China's processed phosphate exports decreased by 51% between January and September, from 12.4 million MT to 6.1 million MT.
The firms are striving to unload pricy stockpiles from earlier acquisitions, so importing nations like India are not likely to witness a significant increase in sales in the coming months despite the drop in costs in China. Due to market uncertainty, prices are currently at USD 640/MT FOB Qingdao, a 3% weekly decline.
According to ChemAnalyst, "There may be some Di Ammonium Phosphate (DAP) demand in India in the coming weeks, but once that need is met, the price in the Suez region will decline again. Also, the closure of the Ma'aden facility in Saudi Arabia is anticipated to add some temporary support in the international market."