US DAP exports in 2007 down 28%, Dec up 13%

15 January 2008 11:42  [Source: ICIS news]

LONDON (ICIS news)--US exports of diammonium phosphate (DAP) fertilizer in 2007 fell 28% on the previous year to 4.47m short tons, data from The Fertilizer Institute (TFI) said on Tuesday.

However, December TFI data showed the US exported 356,310 short tons of DAP, 13% up on the same month of 2006.

India accounted for 41% of the yearly toal - 1.81m short tons - followed by Mexico with 356,412 short tons, 8%, Brazil with 298,225 short tons, 7%, China 291,695 short tons, 7%, and Japan 258,691 short tons with 6%.

Guatemala received 62,635 short tons in December, 18% of the total, followed by Brazil with 62,243 short tons or 17% and India with 55,226 short tons or 15%. Australia accounted for 41,979 short tons, 12% of the total.

The comparative lack of DAP exports in 2007 comes at a time when US DAP export prices have risen dramatically over 2007 and into 2008.

DAP export prices stood at $250-255/tonne (€168-171/tonne) FOB (free on board) in January 2007, but increased to $600-610/tonne FOB at the beginning of January 2008, rising a further $100/tonne since then to a record-high $720/tonne FOB.

The export market price has been, in part, driven by very strong demand in the US domestic market, which has allowed US exporters to cherry pick export business, gaining successively higher prices in each new round of sales.

A strong European market, tightening supply and high feedstock costs for ammonia and sulphur have also pushed up DAP prices globally.

($1 = €0.67)

By: Mike Nash
+44 20 8652 3214

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