Freight Costs and Lean Stocks Drive US APP Market Higher

US Ammonium Polyphosphate (APP) market strengthened through June as seasonal agricultural demand and tighter supply conditions supported higher prices. Strong fertilizer procurement for field applications remained the primary demand driver, while steady consumption from construction and infrastructure projects, particularly for flame-retardant coatings, provided additional market support. Buyers increased purchases to secure prompt material, resulting in relatively lean distributor inventories and firmer market sentiment. On the supply side, rising freight costs and shifting export allocations reduced product availability in the US market and extended delivery lead times, increasing landed costs and limiting prompt supply. Although feedstock conditions remained largely stable, ongoing geopolitical risks surrounding key shipping routes continued to pose potential upside risks to production and logistics costs. Looking ahead, the market is expected to soften in the short term as seasonal fertilizer demand gradually eases and more competitive Asian export offers return. However, prices are likely to remain broadly stable thereafter, subject to freight conditions, feedstock availability, and global trade developments.