Hormuz Disruptions Lift DAP 3.0%, Can Illinois Prices Stay Firm?

Di-ammonium Phosphate (DAP) prices in Illinois increased by *.** in August ****, supported by firmer replacement costs, seasonal procurement, and continued uncertainty around global phosphate supply. The August increase came despite relatively cautious U.S. fertilizer demand, as supply-side constraints increasingly influenced market sentiment. The Strait of Hormuz disruption affected global fertilizer trade of annual DAP export capacity in the Gulf at risk, contributing to a significant increase in global phosphate prices. Although Middle Eastern material continued reaching the United States through alternative logistics routes, the disruption increased sourcing and transportation risk. Saudi Arabia remained the leading DAP supplier to the U.S., accounting for ***,*** tonnes during the first half of ****, while Jordan supplied **,*** tonnes. This continued import availability prevented a sharper supply squeeze, but higher replacement costs and uncertainty supported firmer DAP DEL Illinois values.

Demand provided moderate support to DAP during...