Diammonium Phosphate Prices Surge in Europe and USA Amidst Supply Chain Disturbance
Diammonium Phosphate Prices Surge in Europe and USA Amidst Supply Chain Disturbance

Diammonium Phosphate Prices Surge in Europe and USA Amidst Supply Chain Disturbance

  • 30-Aug-2023 12:50 PM
  • Journalist: Francis Stokes

During the first half of August 2023, the Diammonium Phosphate (DAP) market witnessed an uptick in price in both North American and European regions. This escalation can be attributed to several factors, including supply chain disturbances, heightened freight charges, and increased feedstock Ammonia prices in Europe. However, in North America, the Anhydrous Ammonia market was relatively stable during this time period. 

In the European fertilizer market, particularly within the DAP segment, a noticeable upward trend was primarily attributed to improved performance within the international market. Russian fertilizer producers were notably active in the USA during the first half of the month, driven by elevated local prices and the need to stock up on fertilizers for the upcoming planting season in September and October. During this period, both PhosAgro and EuroChem had limited sales, coupled with a resurgence in demand from the domestic market, which played a significant role in supporting the prevailing price trend of DAP in Russia.

Furthermore, certain disruptive events also influenced the fertilizer landscape. A fire in a fertilizer warehouse in Moscow and the subsequent damage of 60,000 tons of fertilizer at the Odesa port at the end of July created disruptions in the supply chain of fertilizers, including DAP, within the European market.

Further, in European countries, including Belgium and Germany, prices of DAP surged due to a disruption in the supply chain in exporting country Russia and a revision in demand from the domestic market for September 2023 and October 2023.

Additionally, this month, the current prevailing price trend received support from the decline in manufacturing activities within the European economy.

On the other hand, in the United States, the price of DAP witnessed an upward trajectory due to expensive imports from overseas markets and a revision in demand from the domestic market. Notably, the Minnesota region encountered severe drought conditions during this period, leading to an observable scarcity of procurement orders. Conversely, the demand for fertilizers, including DAP, in the southern region, specifically South Dakota, experienced a moderate uptick due to the occurrence of rainfall. This climatic event contributed to a modest increase in demand. Further, the low water level in the Panama Canal caused by high temperature led to delayed imports, consequently leading to scarcity of DAP in the regional market.

According to ChemAnalyst, the price of DAP is expected to increase in North America and Europe in the forthcoming months in the wake of increasing demand from the end-user fertilizer market and a notable uptick in feedstock Ammonia and upstream Natural Gas prices in the coming months.

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