07 January 2011 16:17 [Source: ICIS news]
LONDON (ICIS)--Indian buyers have agreed first-quarter prices for phosphoric acid imports from Morocco at a price up $50/tonne (€39/tonne) P2O5 (nutrient content) compared with the fourth quarter of 2010, due to higher raw material costs, producer sources said on Friday.
The significance of the increase lies in the fact that it is the first phosphoric acid price increase since the introduction of the nutrient-based subsidy (NBS) in
Phosphoric acid had previously been settled at $780/tonne P2O5 CFR, in line with the import parity price of diammonium phosphate (DAP) at $500/tonne CFR set by the government. This price held through 2010.
The new phosphoric acid price paves the way for 2011-2012 DAP contract negotiations. In 2010-2011,
In November 2010, the Indian Department of Fertilizers (DoF) indicated that the import parity price for DAP for 2011-2012 would be $450/tonne CFR. However, this announcement was greeted with derision in the market given the stronger market fundamentals - tight supply and improving demand globally - relative to 2010.
($1 = €0.77)
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