China’s DAP exports up $150/tonne to new high

26 March 2008 15:30  [Source: ICIS news]

LONDON (ICIS news)--Chinese phosphate fertilizer producer Wengfu has reported a sale of 5,000 tonnes of diammonium phosphate (DAP) fertilizer at prices up $150/tonne on last business done due to tight supply, a spokesperson at the company said on Wednesday.

 

Wengfu sold a DAP parcel to a southeast Asian buyer at $1,250/tonne FOB (free on board) for late April/early May shipment. This was a new high with last business concluded at $1,000-1,100/tonne FOB.

 

Importers in Vietnam and Thailand are very short of product. The market is tight globally and prices from all sources continue to rise.

 

At the same time, Chinese DAP exports were still confined to truckloads to the ports - after a rail car ban - for loading onto smaller vessels for regional markets, as the government was determined to secure greater supplies for the domestic market. Some sources said that the domestic market faced a 2m tonne shortfall for the spring season.

 

This had tightened global supply even further, sources said.

 

The government had already imposed a 35% export duty on some phosphate fertilizers to suppress exports, and Chinese producers reported that there were rumours that this could rise to 45% effective 1 April.

By: Mike Nash
+44 20 8652 3214

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