China DAP rises $60-70/t as output is curtailed
09 January 2008 15:07 [Source: ICIS news]
LONDON (ICIS news)--Chinese export diammonium phosphate (DAP) prices have risen $60-70/tonne (€41-48/tonne) in 2008 on an an increasingly bullish international phosphate fertilizer market and reduced production, a Chinese producer said on Wednesday.
Chinese DAP fertilizer producer Wengfu sold 20,000 tonnes of DAP plus other phosphate fertilizers to various southeast Asian regional markets at $710-720/tonne FOB (free on board), a source at the company confirmed.
This was up $60-70/tonne on the $650/tonne last achieved late in December 2007.
Other fertilizer traders confirmed offers from Chinese producers in excess of $700/tonne FOB.
Wengfu also confirmed that it had stopped DAP production on one line at its 1.2m tonne/year DAP plant at the end of December, citing a shortage of ammonia. It planned to restart output around 20 January.
Yuntianhua, another DAP producer, was also reported to have reduced production for the same reason.
The global DAP market has been firm throughout 2007, due to high crop prices, demand for biofuels and rising feedstock costs for phosphate rock and phosphoric acid.
($1 = €0.68)
By: Mike Nash
+44 20 8652 3214
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