US DAP export cargo sold at $800/tonne record

13 February 2008 15:36  [Source: ICIS news]

LONDON (ICIS news)--US-based Phosphate Chemicals Export Association (PhosChem) has sold a cargo of diammonium phosphate (DAP) fertilizer at a new record of $800/tonne (€552/tonne) FOB (free on board) Tampa, sources at the organisation said on Wednesday.

The price for the 6,000 tonne DAP cargo was up $15/tonne on PhosChem’s last business into Mexico, done earlier this week at $785/tonne FOB.

PhosChem was now under offer at $815/tonne FOB.

Earlier in the week, PhosChem announced a 1m tonne DAP supply contract with India with the price indexed to market prices, sparking a flurry of buying activity in Pakistan on concerns of dwindling global availability and rising prices and adding new impetus to an already very firm market.

Tampa export prices have risen from $600/tonne FOB at the start of the year, due to strong demand in the US domestic market lessening availability and production eroded by a lack of raw material feedstocks.

Prices from all sources have continued to rise inexorably, with Tunisian product already sold at $810/tonne FOB and Russian and Moroccan DAP being offered as high as $850/tonne FOB.

At the same time, rising export duties in China were expected to severely curtail availability from this source during the first half of the year.

PhosChem members comprise US producers Mosaic and PotashCorp (PCS).

($1 = €0.69)

By: Mike Nash
+44 20 8652 3214

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