Diammonium Phosphate Prices Growing Twice in the US as Russia Implies Export Restrictions
- 23-Mar-2022 2:40 PM
- Journalist: Nicholas Seifield
Prices of Diammonium Phosphate (DAP) have climbed in the US in sync with rising worldwide fertilizer costs, by up to 13% in the previous month. Russia is the world's largest fertilizer exporter. Still, its conflict with Ukraine has hampered shipping and pushed up the price of natural gas, a key component in fertilizer manufacture.
Russia agreed earlier this month to impose an export ban until April 2nd to keep supplies affordable for its farmers. This restriction could raise fertilizer prices in the US when Diammonium Phosphate (DAP) prices have increased by more than 30% since the last year. Recent supply chain issues have exacerbated the country's pricing situation. Furthermore, a high natural gas price leads to an increase in the price of fertilizers.
On Friday, the prices given at DEL Illinois for Di Ammonium Phosphate were assessed at USD 915/MT, indicating almost 3 percent week-on-week inclination. Rising global raw material prices have influenced domestic DAP rates. Potash prices grew by 9% month on month to an average of USD 491 per tonne. Potash prices have risen in recent weeks due to supply concerns and increased worldwide demand.
As per ChemAnalyst, "Recent supply chain disruptions, ranging from the global pandemic to Russia's unprovoked war against Ukraine, have proven that ammonia, potash, and DAP prices are likely to remain high for some time. The unprecedented rise in energy costs puts Europe and America at risk of fertilizer shortages and price increases in the foreseeable future. Price hikes in the global market are projected to impact the US market as well."