Mosaic's US domestic MAP at $35/short ton hike

20 December 2007 13:14  [Source: ICIS news]

LONDON (ICIS news)--Domestic prices for US phosphate fertilizer producer Mosaic Co have leapt $35/short ton in the last week on the back of strong demand ahead of the spring season, sources at the company confirmed on Thursday.

Mosaic sold a unit train (6,500 tonnes) of monoammonium phosphate (MAP) fertilizer from Central Florida at $531/short ton (€372/short ton) FOB (free on board). The last price paid was $500/short ton.

Rail cars from Central Florida serve the eastern part of the US and Canada.

Theoretically, this put prices for diammonium phosphate (DAP) fertilizer, which commanded a $4/short ton premium, at $535/short ton, which was Mosaic’s target price, the source added, although this had yet to be achieved.

Prices for phosphate fertilizers have been rising throughout 2007 both globally and in the US domestic market, based on strong crop prices and demand for biofuels.

However, even at $535/short ton, this only equated to $597/tonne FOB Tampa for export, the source added, in effect $23/tonne behind the current export offer price of $620/tonne FOB, but the source added that the gap had been narrowed.

Major DAP and MAP producers in the US also include Mississippi Phosphates and CF Industries.

($1 = €0.70)

By: Mike Nash
+44 20 8652 3214

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