Phosphate demand will continue to grow - Mosaic

29 July 2008 21:59  [Source: ICIS news]

HOUSTON (ICIS news)--Global demand for phosphate fertilizers will continue to increase despite prices doubling from last year’s levels, fertilizer producer Mosaic said on Tuesday.

CEO Jim Prokopanko, speaking a day after the company unveiled record earnings, said high prices were not leading to demand destruction for phosphate.

“We’re selling it as fast as we can produce it, and where prices go from here - with a strong market, you can draw your own conclusions,” Prokopanko said during an earnings conference call.

Diammonium phosphate was trading at $1,190.49/tonne (€750.00) FOB (free on board) NOLA (New Orleans), up from $443.13/tonne at this time last year, according to global chemical market intelligence service ICIS pricing.

While fertilizer demand remains firm, Prokopanko said the recent increases in sulphur prices were “a temporary phenomenon”.

Sulphur prices have recently skyrocketed, and now trade at $350-$670/tonne FOB in Vancouver, up from $55-$135/tonne at this time last year.

“We’re confident we’re going to see much lower sulphur prices in the next couple quarters,” Prokopanko said.

($1 = €0.63)

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By: David Rosen

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