14 February 2008 17:28 [Source: ICIS news]
LONDON (ICIS news)--US producers have reached new heights in domestic phosphate fertilizer pricing, as the market tightened due to demand in India and a lack of supply from China, a US producer source said on Thursday.
US producer Mosaic sold barges of diammonium phosphate (DAP) fertilizer at $700-740/short ton FOB (free on board) Nola (New Orleans) this week, up from $660-675/short ton last week.
This came at a time when US producers had also locked in 1m tonnes of DAP for shipment to India, tightening supply for the rest of 2008.
At the same time, rising export duties in
These factors had combined, said the source, to make US domestic buyers, sensing a tightening market, to lock in tonnage with traders selling DAP for summer fill and the fall season.
Fill programmes are usually promoted by producers to encourage buying during the off-season. It was highly unusual, said the source, that buyers demanded product for summer fill.
Mosaic was not selling forward for fall application as it was unsure of future raw material costs, bsources said that other producers and traders were selling well ahead.
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