PhosChem to supply 1m tonnes of DAP to India

11 February 2008 13:59  [Source: ICIS news]

LONDON (ICIS news)--US-based Phosphate Chemicals Export Association (PhosChem) will supply 1m tonnes of diammonium phosphate (DAP) fertilizer to a key Indian customer during the next 13 months, the company said on Monday.

Under the terms of this new contract, the price will be indexed to market pricing, the first time this type of arrangement had been agreed with Indian buyers.

The indexing agreement was put in place to take account of rapidly rising DAP prices in the international spot market. US producers would be unwilling to lock in such a sizeable contract at fixed prices.

India had widely been expected to procure a large volume of DAP in February to ensure security of food supply, fertilizer traders had said last week.

Shipments will occur from March 2008 through March 2009.

"India has a large and growing import requirement and we are delighted to conclude an agreement of this magnitude. This agreement reflects continued strong demand in the international phosphates market," stated PhosChem president Steve Paxton.

PhosChem comprises US fertilizer producers Mosaic and PotashCorp (PCS).

By: Mike Nash
+44 20 8652 3214

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