29 July 2011 13:01 [Source: ICIS news]
SHANGHAI (ICIS)--Offers for 57% diammonium phosphate (DAP) on the Chinese domestic market have reached yuan (CNY) 3,050/tonne EXW (ex-works), up by CNY50–100/tonne in the past month on strong demand, industry sources said on Friday.
Currently, Chinese producers are providing a limited supply of 64% DAP to the domestic market because they have been focusing on exports since 1 June. One producer says most of its products are supplying the export market.
There are two factors stimulating the 57% DAP market. Firstly, domestic traders are choosing to purchase 57% DAP because some small plants that have not signed any export contracts are able to supply the domestic market to some extent.
Secondly, the wholesale price of 57% DAP is lower than that of 64% DAP, which makes domestic buyers more likely to accept 57% DAP prices.
Wholesale prices of 64% DAP are mostly in the range of CNY3,450-3,650/tonne in some districts in northern, eastern and northwestern ?xml:namespace>
Many Chinese users feel that the DAP price is too high for them following its considerable increase since last year.
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