For the Quarter Ending December 2022
North America
Di ammonium phosphate price trajectory in the US market increased initially and then moved downwards. The Feedstock Ammonia became short in supply as many industries cut back on production. However, DAP prices fell in November and December as demand slowed. Consequently, the price of DAP in the US market fell further in the latter half of the fourth quarter. Statistics indicate that feedstock natural gas prices fell by over 15% in November 2022 and that this trend continued into December. The drought conditions and the country's inflation rate decreased the amount of phosphate produced for the local market, as consumption was expected to fluctuate at the lower end. Prices for Di Ammonium Phosphate (DAP) DEL in Illinois were calculated at USD 868/MT.
APAC
The pricing trend for Di Ammonium Phosphate in the Asia-Pacific area remained low in Q4 due to a lack of demand from downstream fertilizer markets. It was anticipated that demand for Di Ammonium Phosphate Fertilizer would rise dramatically during India's rabi season in October. However, this did not happen, and the market saw a lack of new orders during this period. The final week of October saw a slowdown in demand for Di ammonium Phosphate following China's National Day holiday. Demand was mostly maintained by the downstream phosphate fertilizers. Weakness in the DAP price in the Chinese market was a result of persistently low demand throughout the post-harvest season. Prices for Diammonium Phosphate (DAP) FOB Qingdao were estimated at USD 639/MT for the quarter ending in December.
Europe
There were mixed sentiments regarding the pricing pattern for Di Ammonium Phosphate (DAP) in Europe throughout Q4 2022 since feedstock reliance remained a key determinant in prices. Fertilizer industries continued to be under pressure since industries' production was seen to be below average. Downstream importers began hoarding ahead of the winter season's demand for fertilizer because they anticipated that wintertime supply would be constrained. Operating rates for domestic production were held in control despite the ongoing increase in energy prices. The accessibility of imports from Asia and the USA has been restricted by labor unrest and port congestion in various German ports. As inventory levels dropped, supplies remained insufficient.
For the Quarter Ending September 2022
North America
With no to very few inquiries, the prices for Diammonium Phosphate remained consolidated at the lower level in the domestic US market. The demand remained sluggish, whereas supplies grew in the market. Labor issues at cargo ports resulted in a bottleneck supply chain and reduced export offers in the last week of July. Traders and sellers indulged in making sales from the piled-up inventories at reduced prices, and the high inflation rate diminished the buying interest among the buyers. Moreover, the decline in new export offers also conclusively affected the price momentum of Diammonium Phosphate in the North American region. The production of Phosphate fertilizer across the country is threatened by Hurricane Ian, which will increase the price of production in the US to an all-time high. Also, the production is hampered by the ongoing upstream volatility.
APAC
The price of DAP in the APAC market fell during the third quarter of 2022 due to a decline in phosphate availability in India. India imports 31% of its DAP from China; therefore, a lack of supply is also apparent in the Indian market this quarter as the operating rate of DAP in Chinese factories has decreased. Traders voiced their displeasure with DAP's availability and costs. Due to the crisis between Russia and Ukraine, prices for natural gas, a crucial raw material for the production of fertilizers, also increased in the final weeks of the quarter. Diammonium phosphate (DAP) prices rose by 4% on the domestic market as a result of rising nitrogen prices, and phosphate rock prices rose by 6%.
Europe
Diammonium phosphate prices soared in Q4 2022 on the back of soaring feedstock Ammonia and Phosphate. Energy costs, including the distribution of natural gas and electricity, continued to be the main driver of price increases. Furthermore, Operating rates for domestic output were kept in check even as energy prices continued to rise. Labour unrest and port congestion in numerous German ports have hampered the availability of imports from Asia and the USA. Supplies remained insufficient as inventory levels declined. Fertilizer industries remained under pressure as the output of both industries was termed underwhelming. In anticipation of lowered supplies during the winter season, downstream buyers started stockpiling ahead of Winter season demand for fertilizers.
For the quarter ending June 2022
North America
The price of Di-Ammonium Phosphate dropped during Q2 of 2022, roughly declining by 10% in May, providing relief to downstream end users. Import restrictions affected fertilizer prices in the United States when Diammonium Phosphate (DAP) prices rose by 30% in the last year. Unexpected fluctuation in the price of Natural Gas in the international market has hampered production activities and forced producers to raise the cost of their material. Furthermore, Recent supply chain problems have compounded the country's pricing crisis. The prices offered at DEL Illinois for Di Ammonium Phosphate were assessed at USD 1054/MT during June 2022, the last weekly average of DAP during Q2.
Asia Pacific
Diammonium Phosphate prices escalated this quarter due to firm demand amid a global shortage. The cost of Diammonium Phosphate in India increased by 1.7%. The DAP (CFR) price has increased by approximately 65.66% on a Y-o-Y basis during May, from USD 566/MT in May 2021 to USD 947.21/MT (INR 73500/MT) in May 2022. At this time, Diammonium pending orders are nearing completion, the focus has shifted to export, and export orders have increased. Raw materials prices remained higher, thus pressuring the producers, owing to low-cost support and a strong Diammonium market. Meanwhile, Fertilizer production, imports, and transportation in China have been disrupted because of the COVID pandemic, war repercussions, and coal shortage. All the ripples were sent to the Diammonium phosphate prices this quarter.
Europe
In Europe, the demand for DAP remained high due to high natural gas prices, which created an energy crisis in the region. However, the production of agrochemicals continued to be low due to movement restrictions amid the rapid spread of COVID 19. In anticipation of good seasonal demand, several buyers asked for early contract purchases of DAP that increased the imports and its prices by the end of Q2 2022. Di Ammonium Phosphate (DAP) FD Hamburg (Germany) prices were assessed at USD 1135/MT during June 2022. Furthermore, the war in Europe greatly impacted the prices of Diammonium Phosphate. Also, because of the logistical constraints, DAP prices rose in Europe.
For The Quarter Ending March 2022
North America
DAP prices in the United States increased in the first quarter of 2022. In the Gulf of Mexico, DAP prices have risen to some extent. Market volatility has been compounded by the fast-spreading Omicron variant of SARS-Cov-2; energy, fertilizer, and freight prices have remained high, placing downward pressure on downstream consumers; and geopolitical concerns have exacerbated market instability in the quarter. As a result of the conflict, Russia, the world's largest fertilizer supplier, has hindered shipping and raised Natural Gas prices which is a major component in fertilizer production. DEL Illinois prices for Di Ammonium Phosphate in North America was assessed at USD 900/MT during the month of March 2022.
Asia Pacific
Due to a severe shortage of the product in the APAC area, diammonium phosphate prices have continued to rise in the first quarter of 2022. Prices for diammonium phosphate (DAP) have been stabilizing in recent weeks after reaching new heights. Traders expressed their dissatisfaction with the availability of DAP and its prices. The price of DAP changed marginally due to a decrease in phosphate availability in China. This quarter, the domestic operating rate of DAP in industries fell by 20%. China's Hubei production facilities, which generate the majority of the country's DAP, have been temporarily shut down, worsening the scarcity. Due to the Russia-Ukraine war, natural gas prices, a critical feedstock for fertilizer production, also jumped in the last few weeks of February. Di Ammonium Phosphate (DAP) CFR JNPT prices in India were assessed at USD 165/MT, whereas FOB Qingdao was USD 597/MT in first quarter of 2022.
Europe
Diammonium Phosphate prices in Europe climbed during Q1 2022 and stayed largely higher in the months of January to March 2022. Higher input expenses, as well as fuel and transportation, had put pressure on farmers' budgets around the world. Since last quarter, European natural gas prices have been at all-time highs, keeping DAP prices high and its availability limited in the region. Increasing energy costs, supply constraints, and trade policies have pushed up prices. High DAP costs pushed up fertilizer prices, exacerbating DAP production worries at a time when the COVID-19 epidemic and climate change are making DAP production more challenging. Prices in the European region were reported at USD 955/ton in 1st quarter 2022.
For the Quarter Ending December 2021
North America
On the back of stronger demand in the spring season, DAP values hovered around historical highs in the fourth quarter of 2021. Reduced supply availability exacerbated the pricing impact of decreased spring demand, with some industry observers predicting DAP demand losses. On the supply side, Chinese and Russian export restrictions reduced global availability marginally in the quarter, increasing import competition and generating new offshore supply concerns, as US trade flows have just recently adjusted to the loss of Russian and Moroccan shipments. Higher prices are also dampening consumer expectations in a number of key global markets. For the last week of December, DAP prices in USA were quoted as USD 760/MT DEL Illinois.
Asia Pacific
Diammonium Phosphate price took a sharp uptrend this quarter on the back of firm demand amid global shortage. Chinese government announced ban on exports for several phosphates, that directly affected the supplies in Indian market. Moreover, arrival of Rabi season had increased demand in India. The price increase was caused by strong domestic and global demand, low fertiliser inventories, and the domestic fertiliser industry's inability to adjust production levels. Upstream Natural gas prices have risen dramatically during the quarter, affecting the prices of all fertilisers. CFR JNPT prices increased to INR 59 per kg in the Indian market, while Chinese offers during December last week were quoted as USD595/MT FOB Qingdao.
Europe
In Europe, the demand for DAP remained high due to high natural gas prices which created energy crisis in the region. Although the production of agrochemicals continued to be low due to movement restrictions amid rapid spread of COVID 19. In anticipation of good demand in winter season, several buyers asked for early contract purchases of DAP that increased the imports and its prices by the end of Q4 2021.
For the Quarter Ending September 2021
North America
In the North American region, Di Ammonium Phosphate (DAP) market outlook appeared bullish with robust demand and tight fundamentals which kept the prices in the upward trend during the third quarter. By August end, most of the industries and refineries across the Gulf Coast of the USA were shut as a repercussion of Ida hurricane that consequently impacted the production as well as supply chain in North America. However, an improvement in the offtakes from end users was observed in this timeframe following the rebound in industrial and commercial activities. Thus, FOB NOLA Diammonium Phosphate prices hovered around USD 650-700 per MT in September showcasing a surge by around USD 60-110 per MT during this quarter.
Asia
In Asia, prices of Di Ammonium Phosphate observed an exponential rise backed by the firm demand from the downstream sectors amidst its constraint availability during Q3. In China, a steep rise in the values of feedstock was witnessed that led to the surge in the prices of DAP across the region. Additionally, several other factors such as low production rates due to energy crises and supply disruption backed by the congestion on several ports of China further contributed to the hike in the pricing trend of DAP in this timeframe. Likewise, Diammonium Phosphate prices soared in India backed by the limited supply and sturdy demand from the downstream manufacturers. In addition, spiraling freight charges and unavailability of containers also sent ripples to the values of DAP. Therefore, monthly average prices of DAP stood at USD 652.49 per MT in September with a rise by around USD 60 per ton since July.
Europe
During the third quarter of 2021, soaring prices of Natural Gas due to tight supplies led to the constant increment in the values of DAP in Europe. Many leading manufacturers were compelled to cut down their production rates due to the energy crisis in Europe which consequently aided the pricing trend of DAP. Further, spike in the prices of feedstock Ammonia and Phosphoric Acid in the global market also influenced the values of Diammonium Phosphate in Europe during Q3 2021. However, demand for DAP remained firm throughout the quarter from the downstream sectors.
For Quarter Ending June 2021
North America
Improvement in farming activities under improved weather conditions increased the demand for Diammonium Phosphate (DAP) in USA during the second half of the quarter. Initially in April, DAP prices observed decline due to ample spot availability in the country and staggering demand. However, in the second half of the quarter prices gained upward momentum supported by clear weather and increased offtakes from end users. Therefore, prices of DAP reached USD 624/MT in the mid of June. In addition, amidst stable offtakes, availability remained sufficient to satisfy the need and thus the prices-maintained stability throughout the last month of June.
Asia
Diammonium Phosphate demand in Asia remained firm during this quarter amidst critical shortage across the region. In India, an astonishing rise of around 40%-60% was observed in retail prices of DAP during end of May, backed by strong demand and firming feedstock value. Therefore, with firm demand outlook prices of DAP hovered around USD 509/MT during May ending 2021. To counter the huge spike in prices, government had to intervene to provide subsidy and safeguard farmer’s interest. Similarly, in China, prices of DAP shot steeply in the meantime, due to high import demand from Bangladesh and other global market.
Europe
High global demand raised prices of Diammonium Phosphate in Europe during Q2 2021. Import demand of Europe remained high in the meantime and traders were ready to pay high prices on cargoes coming from India and Middle East. In addition, increase in feedstock Ammonia and Phosphoric Acid prices due to shortage, also contributed to the rise in DAP prices in Europe. On the demand side, demand for DAP from end users remained high enough to encourage this steep rise in the region.
For the Quarter Ending March 2021
North America
DAP remained resilient from Q4 2020 across the region and globally during Q1 2021, hence the price acceleration continued, further affected by winter storm hit US gulf. This price acceleration was due to the shortage of upstream materials, like Nitrogen. Several Nitrogen producers shut their plant operations under extreme cold which eventually led to the shortage of feedstock Ammonia. Under these conditions prices of DAP skyrocketed across the region and reached USD 576.7/MT till March. This price hike was also supported by high local demand which eventually led to increased dependency for imports from Europe.
Asia
The Asian region saw moderate to low domestic demand for DAP, but high export demand from the US and Europe. Domestic demand for DAP in China remained moderate, but export demand was higher than anticipated, owing to a shortage of local material caused by lower availability of upstream natural gas, which effectively forced prices to rise in the region. Meanwhile in the Indian DAP market, domestic demand from the agriculture sector was low, hence the producers increased their exports to satisfy high demand coming from the US and Europe. Despite of stable demand from the Indian markets, retail prices of DAP showed a sudden increment of more than 50% during the quarter, buoyed by the global upsurge in rates.
Europe
Europe witnessed high demand for DAP from the agriculture sector due to the arrival of spring season. As the demand from domestic and international market was high, manufacturers were looking forward to increasing the prices of DAP in the coming months. Shortage of DAP in the US also forced European manufacturers to enhance their export volumes to enhance their margins and high premium on prices.
For the Quarter Ending December 2020
North America
In early Q4 2020, tight supply of DAP and other phosphate salts in the region accelerated the prices of most agrochemicals. The tight supply was a repercussion of the lower production rate due to damage caused by a spate of hurricanes in October. Later in December 2020, the demand remained firm, but the supply marginally decreased, which again caused a rise in DAP prices. Although the month over month increment in the regional production rates gradually eased its prices by December end.
Asia
Asian Diammonium Phosphate market remained firm in Q4 2020 driven by its appreciable consumption from the fertilizer industry. In China, before November, domestic supply of phosphate fertilizers was deemed low, as various manufacturers were more inclined towards catering to the global demand under expectations of better netbacks. By November, DAP imports from USA considerably reduced that created a shortage of DAP and other phosphate fertilizers in various countries across the region. Besides, favourable weather conditions amidst rabi season provided a favourable push to DAP’s market sentiments in India.
Europe
In Europe, the demand for DAP remained low, as only few countries participated in the spot buying activities while most of them stayed muted. Although the production of agrochemicals continued to be low due to movement restrictions amid rapid spread of COVID 19. In anticipation of good demand in spring season, several buyers asked for early contract purchases of DAP that increased the imports and its prices respectively by the end of Q4 2020.
