Monoammonium phosphate (MAP) and diammonium
phosphate (DAP) prices are on a steady increase all around the world due to
short production supplies. Global demand
for phosphate fertilizers in South Asia is predicted to remain strong, and
export prices are likely to maintain stability while showing an upward trend.
The
strike price of MAP and DAP imports from China in September has increased to
USD 332-335/ton and the FOB price of MAP and DAP was USD 330/ton earlier in
September. According to a news report, in early September, businesses in
Thailand purchased DAP products from China at a CIF price of USD 340/ton. In
India, a recent trade of DAP products from China took place at a CIF price of USD
340/ton.
China
faces fertilizer competitors in Russia, Germany, and Tunisia
In
the European market, imports of DAP from Russia averaged around USD 370/ton. Sellers
at German ports quoted a similar price in early September but have since
slightly decreased their price to USD 350/ton.
In
many phosphorus companies in Russia, the FOB price of MAP products from Brazil
went up to USD 350-355/ton, compared to the original price of USD 345-350/ton
in September. In the United States, the port of New Orleans was closed due to hurricane
Laura in September, but the shipping of phosphate fertilizers was largely
unaffected.
The
Tunisian chemical fertilizer producer, GCT, has gradually resumed its DAP
production in order to satisfy the needs of consumers in Tunisia and southern
European countries. The DAP demand in India and Pakistan still remains strong.
According
to tranalysis.com/Analysis/Index#item1?KeyWordID=1ea6f8b39ff44ad4becec20c63502df5&PublisherID=b3fac7dd-9156-424c-9843-193631ebb67b' target='_blank'>export volume data from China, the total exports of MAP in 2020 increased by
0.94% YoY, which shows a small change compared to the same period last year.
This is because the main demand for MAP occurs during the first quarter, particularly
from buyers located in South America.
China
reduces fertilizer exports in early 2020 and increases domestic sales
The
export volume of DAP shows a decrease of 440,000 tons during the period from January
to April of 2020. This is mainly due to the following reasons. First, the
production of many Chinese chemical fertilizer companies was limited by the
effects of COVID-19. Second, during the first quarter, Chinese farmers were carrying
out spring ploughing, and the demand of phosphorus fertilizers was very strong
inside China. After the COVID-19 outbreak in China, many DAP manufacturers in
China increased DAP production to ensure sufficient supplies during the spring
ploughing in China. As a result, the exports of phosphorus fertilizers
gradually dropped during the period from January to April of 2020.
From
January to April of 2020, China exported MAP products mainly to Australia,
South America, as well as Southeast Asia, while other regions accounted for
less than 15% of the total export volume. Australia imported 310,000 tons of
MAP from China while Brazil imported 153,000 tons of MAP from China.
From
January to April of 2020, China exported DAP products mainly to India and Vietnam,
with 210,000 tons of DAP exported to India and 180,000 tons of DAP exported to
Vietnam. In the first half of 2020, China exported 85% of its DAP to Southeast
Asian countries and only 15% of DAP to other districts. It is expected that the
export price of DAP will grow steadily in the future.
For
more information on China's fertilizer market, please check our Phosphorus
Industry China Monthly Report.