IFA '11: DAP producer GCT Tunisia at 100% capacity by June

25 May 2011 13:11  [Source: ICIS news]

Phosphate rock is a key raw material used in the production of phosphate fertilizers.MONTREAL (ICIS)--Tunisian diammonium phosphate (DAP) producer Groupe Chimique Tunisien's (GCT) production was expected to normalise in June following recent political demonstrations in the country, a source at the company said late on Tuesday.

Speaking from the sidelines of the International Fertilizer Industry Association (IFA) conference, the source said that railway strike action was still affecting supplies of phosphate rock, a key raw material used in the production of phosphate fertilizers.

However, the DAP plant - which normally produces 110,000 tonnes/month - was operating at 75-80% of capacity.

Buying sources concurred, with an Italian importer indicating that it was about to enter negotiations for June shipment, having bought two 7,000 tonne lots in May at $640/tonne (€454/tonne) FOB (free on board).

Turkish buyers also confirmed increased availability of DAP out of Tunisia, with a Turkish importer confirming it had bought 10,000 tonnes for May at $630/tonne FOB. Total Turkish purchases were thought to total 40,000-70,000 tonnes for May shipment onwards.

Turkey is a major export outlet for GCT during the third quarter and is expected to take around 350,000 tonnes during this period, effectively removing GCT from the supply side of the market.

The IFA conference takes place during 23-25 May.

For more on DAP visit ICIS pricing fertilizers

By: Mike Nash
+44 20 8652 3214

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