Diammonium Phosphate (DAP) Prices Witnessed a Dramatic Surge in the US amidst Hurricane Ian
- 29-Sep-2022 12:46 PM
- Journalist: Nicholas Seifield
Diammonium Phosphate prices have increased significantly in the third week of September in the US market, reaching a high of USD 806/tonne DEL Illinois with a weekly increase of 13%, according to data compiled by the ChemAnalyst pricing team on September 23, 2022.
Even though Ammonia and Diammonium Phosphate (DAP) prices have decreased since spring, fertilizer prices are currently higher than they were a year ago.
Potash and Diammonium Phosphate (DAP) prices are at higher levels and are anticipated to grow strongly during the upcoming winter. With a cost of $857 per tonne recorded on September 22, 2022, raw material Phosphate prices have stayed high and reasonably stable.
The production of Phosphate fertilizer across the country is about to be threatened by Hurricane Ian, which will increase the price of production in the US to an all-time high. The phosphate rock assets owned by Mosaic Co. are located in Florida, where they are mined and processed into fertilizers like Diammonium Phosphate and Monoammonium Phosphate.
If the local output is interrupted for an extended period, the country would be forced to rely on more expensive imports due to a US levy on Russian and Moroccan phosphate suppliers. Nutrien, which manages a phosphate facility in White Springs, Florida, keeps an eye on storm developments, weather warnings, and official instructions.
Due to the limited supply, strong farm economics, and historically low grain stocks around the world, which encourage the use of nitrogen fertilizers, the forecast for our nitrogen end markets continues to be positive.
The ChemAnalyst database predicts that the price trajectory of Diammonium Phosphate will continue on an upward trend in the upcoming months. Due to slow operating rates, it is anticipated that an increase in offtakes from the worldwide fertilizers market and low inventories in the fertilizer industries will drive up the product's price.