Diammonium phosphate Prices, markets & analysis
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Diammonium phosphate Overview Transcript
The fertilizer, diammonium phosphate is a source of the key plant nutrient, phosphorus, which is critical for the growth of all plants
DAP as a fertilizer is commonly used in the production of corn, soy beans, wheat and all major crops.
The market for DAP is a global one, and while the largest market for DAP is in the United States, the market is highly affected by the export market, particularly in Brazil and Argentina, and the needs of India and China.
Key driver for the DAP market is trends in crop production. If crop producers are planting more acres, that means they’re going to be using more DAP.
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Diammonium phosphate: Market overview
The global diammonium phosphate (DAP) market has been on a relatively firm footing over the past few years, as demand for fertilizers has been strong on the back of concerns about food security and a growing demand for crops as fuel. Strong feedstock prices have also kept prices firm.
The growth in phosphates demand looks set to continue. However, with new capacity coming on stream, supply is also increasing, while reduced demand from India through 2013 is pressuring prices.
The 3m tonne/year Ma’aden Phosphate Plant in Saudi Arabia was started up in 2011 and is expected to produce 2.5m tonnes in 2013 before reaching full capacity in 2014. Meanwhile, Moroccan producer OCP is planning to build four new 1m tonne/year units between 2013 and 2015.
Chinese export policy can also impact the supply side. Currently, China adopts a low and high export tax window that only makes exports viable for a certain period of the year. For 2013, the window has been extended by a month and is running from mid-May to mid-October and may mean more exports from China this year.
Updated to mid-August 2013
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About Diammonium phosphate
Diammonium phosphate (DAP) is a solid material that is soluble in water. It is produced by the reaction of ammonia with phosphoric acid and stored as a solid at ambient temperatures.
DAP is widely produced in granular form for use as a fertilizer in the growing of wheat, barley, vegetables and fruit. It can be applied directly to the soil or blended with other types of fertilizers.
A further application for DAP is its use as a fire retardant where it lowers the combustion temperature, decreases maximum weight loss rates and causes the increase in the production of residue or char.
Other uses include a yeast nutrient in winemaking, purifying sugar, and a flux for soldering tin, copper, zinc and brass.