International Ammonium Phosphate Market

Pakistan imports DAP from Nora, Chinese prices drop

Global phosphate prices were largely flat this week. Several major markets were quiet, but Pakistan saw some new DAP trade, with Saudi DAP and MAP for sale to Brazil.

DAP prices in Pakistan rose to $1,025/t cfr as importers bought two cargoes from Saudi Arabia. It was as high as $1,150/t cfr last week, but this is an increase of $80/t over last month's sales. In India, DAP prices held steady as importers continued to await new fertilizer subsidy announcements. Lack of demand has put pressure on Chinese export prices, falling to $1,050-1,080/t fob.

West of Suez, DAP and MAP from Saudi Arabia were also traded to Brazil, with prices steady at $1,300/t cfr. Lack of demand has caused DAP prices to fall in the US, with barge prices falling to $940-970/st FOB Nola.

International price expectations firm

Slowing demand in several key demand countries has resulted in a levelling off of prices, and in some regions, prices have slipped. However, due to the tight supply performance, DAP bullish sentiment is still strong. China's export restrictions remain in place and markets such as Brazil and India still have a lot of import demand in the coming months, and prices are likely to rise further.