ICIS' diammonium phosphate (DAP) coverage focuses on the US markets. The independent and unbiased coverage includes commentary on shipping movements, concluded trades, export activity and regional updates, with spot price assessments covering New Orleans and Tampa. There are also updates gathered by our locally based reporters on monoammonium phosphate (MAP) when applicable.
You can rely on our market intelligence to keep you up-to-date and help you to make informed commercial choices. There is also a monthly price forecast and analysis publication - The Outlook: Phosphates.
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
Updated to Q2 2015
All eyes are expected to be on the Indian phosphates market in the second quarter. There are expectations that Indian demand will kick in this quarter, as the increase in the price of phosphoric acid to $805/tonne CFR for January-June has made it cheaper to import DAP than to produce it in India.
Another game changer will be China and the timing of its exports. With the scrapping of the export tax window and the introduction of a flat export tax regime this year, Chinese producers have been focusing on the domestic market and small export sales so far. However, market players expect Chinese product to be competing in non-traditional markets (such as North and South America) and thus increasing competition among producers and putting pressure on prices.
In other regions, demand is expected out of the US domestic market with spring application under way. With DAP barge prices under pressure lately and lacklustre activity on the Mississippi river, buyers are expected to start making purchases soon as the weather improves and especially if Moroccan, Russian and Chinese product arrives in the US at more competitive prices than domestic DAP.
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Diammonium phosphate news & analysis
ICIS price assessments are based on information gathered from a wide cross-section of the market, comprising consumers, producers, traders and distributors from more than 250 reporters world-wide. Confirmed deals, verified by both buyer and seller, provide the foundation of our price assessments.
Our in-depth market knowledge drives our specialist focus, as we recognise the importance of individual market dynamics and not a one-size-fits-all approach.
Over 25 years of reporting on key chemicals markets, including Diammonium phosphate, has brought global recognition of our methodology as being unbiased, authoritative and rigorous in preserving our editorial integrity. Our global network of reporters in Houston, London, Singapore, Shanghai, Guangzhou, Mumbai, Perth and Moscow ensures unrivalled coverage of established and emerging markets.
Diammonium Phosphate Methodology
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.