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.?xml:namespace>
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.
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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.
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