Morocco denies offering India phosphoric acid

12 February 2008 15:13  [Source: ICIS news]

LONDON (ICIS news)--Reports that Moroccan phosphoric acid has been offered to Indian buyers at $1,500/tonne (€1,035/tonne) for P2O5 nutrient been vehemently denied, according to producers on Tuesday.

Sources at Office Cherifien des Phosphates (OCP) said that there was no concrete offer on the table, a claim confirmed by trader sources in India.

Other traders in India had earlier reported that OCP had offered at $1,500/tonne CFR (cost and freight) have for 2008-2009 contracts, almost three times the figure agreed for 2007-2008 contracts, due to substantial increases in the cost of feedstock ammonia and sulphur.

Indian buyers were said to have countered at $1,120/tonne P2O5 CFR.

OCP officials recently visiting India were reported to have said then that there was little point in discussing phosphoric acid prices when future feedstock costs were unknown.

Another OCP delegation was expected in India next week, at which acid prices may be discussed. But sources at OCP said there may again be reticence to offer at a price that it could not later retract should ammonia and sulphur costs continue to hike dramatically.

India is the largest importer of phosphoric acid in the world, accounting for more than 50% of global trade. It is used in the production of finished phosphate fertilizers and is primarily sourced from Morocco and Tunisia.

($1 = €0.69)

By: Mike Nash
+44 20 8652 3214

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