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Diammonium phosphate US Transcript
The US diammonium phosphate (DAP) report covers spot prices in the US Gulf (USG). DAP is the main source of the key nutrient phosphorous and the report should be of interest to everyone in the distribution chain from producers, to wholesalers, to distributors.
In addition to tracking prices in the US Gulf, we also keep a close eye on barge prices. Covered with our news and analysis, the DAP report provides producers, wholesalers and markets with an excellent source of critical business information.
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The global markets for diammonium phosphate (DAP) have been strong in recent years, with demand for food increasing as a result of the growing world population, as well as the rising economies of many countries.
In the US in particular, demand for DAP and other critical fertilisers has been increasing, as farmers seek greater crop yields on relatively stable planting areas.
DAP contains the nutrient phosphate, which, along with nitrogen and potassium, is necessary for the growth and development of all plants and crops.
Leading global producers of DAP include China, US, Morocco/North Africa and Russia.
DAP production in the US is centred in Florida, near the key inputs of phosphate rock, ammonia and sulphur.
To meet the nutritional needs of the growing population, crop production needs to increase from the 2.5bn tonnes seen in 2010 to 3bn tonnes in 2020, a production increase of 20%.
To achieve adequate yields over the next decade, the use of DAP and other fertilisers must increase by a similar percentage.
Updated to Q1 2015
Demand for monoammonium phosphate (MAP) and diammonium phosphate (DAP) for winter storage entered peak season in January-February 2015. Apart from orders signed at the end of 2014, producers also accepted new orders from northeast China, northwest China and east China. Additionally, the export tax window was cancelled and there was demand from South America and southeast Asia in January-February. As a result, selling ideas firmed amid tight supply and fewer low-priced cargoes were available. Prices were at CNY2,100-2,150/tonne EXW for 55% powdered MAP and at around CNY2,650/tonne EXW for 64% DAP. Export prices of DAP increased from $460-465/tonne FOB to $465-470/tonne FOB.
Demand weakened significantly in March. However, granular MAP and DAP prices remained high because producers were fulfilling previous orders and signed some export orders. Only powdered ammonium phosphate prices decreased slightly. Prices of 55% powdered MAP were at CNY2,030-2,060/tonne EXW. Selling ideas of DAP firmed at around CNY2,700/tonne EXW, with export prices at $470-475/tonne FOB.
The US Diammioum Phosphate report covers spot prices in the US Gulf. DAP is the main source of the key nutrient Phosphorous and the report should be of interest to everyone in the distribution chain from producers, to wholesalers, to distributors. In addition to tracking prices in the US Gulf, we also keep a close eye on barge prices. Covered with our news and analysis, the DAP report provides producers, wholesalers and markets with an excellent source of critical business information.
ICIS collects pricing data on a wide range of chemical, energy and fertilizer products, including Diammonium phosphate. Our extensive experience in price reporting means we can offer you access to historical data dating back more than 20 years for certain commodities.
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