Views: 17 Author: Site Editor Publish Time: 2022-05-19 Origin: Site
The Indian government intervened on DAP prices this week, with the Fertilizer Ministry ordering importers to limit purchases to $920/t cfr. Prior to the announcement, it was trading at $1,030/t cfr, which is more than $100/t higher than the breakeven point given retail prices and subsidy levels. There was some initial interest in buying DAP in Pakistan, but the market was mostly on the sidelines due to the lack of clarity on the price direction after India set a price cap. DAP prices declined in China, with the low price decline $50/ton to $1,000-1,040/ton FOB.
In west of Suez, DAP barge prices at Nola slipped further to $830-855/st FOB. MAP price fell to the low end of $1150/t cfr Brazil as importers remained hesitant to buy.
Market demand still exists
Price caps in India have dampened sentiment east of Suez. But few suppliers are willing to sell at $920/t cfr currently. Bangladesh, Pakistan and India all have a lot of DAP demand in the coming months, which will eventually have to bring importers back to the market. In Latin America, Brazil and Argentina importers still need to complete purchases by the third quarter.