Phosphates market shows signs of optimism in selected regions

Focus article bu Sylvia Traganida

LONDON (ICIS)–The global phosphates market has started showing signs of recovery in some regions this week, according to sources on Friday.

In China, producers’ ideas were above $465/tonne FOB (free on board), even though there was a diammonium phosphate (DAP) deal heard around $475/tonne CFR (cost and freight). Export activity is expected to pick up in the coming weeks depending on the timing of the Indian demand.

In India, Chinese and Russian DAP is heard to have been sold. Most buyers are reluctant to return to the market before the fertilizer subsidies for 2015-2016 are announced officially, as they are covered with previous purchases.

Buyers are in no hurry to make purchases so far, but they will need to return to the market for DAP for May arrival shipment.

In the US, the Tampa DAP benchmark is under pressure following a Mosaic sale to Latin America and lacklustre demand. Domestic DAP barge prices remain unchanged following limited business on the river. Activity is heard to be picking up out of the upcountry warehouses and is expected to move to Nola barges.

A US-based producer said that “application continues to steadily ramp up in the Corn Belt as we see more products moving out of the warehouses.”

The Brazilian market has picked up over the last two weeks, with trader interest in buying increasing. Market players say Brazil imported less monoammonium phosphate (MAP) in Q1 and there are high expectations for sales this quarter.

On the supply front, most producers are almost sold out for May already. PhosAgro and AFT/Fertinal have commitments to their respective domestic markets and are focusing on exports.

Moroccan producer Office Cherifien des Phosphates (OCP) is focusing on phosphoric acid and NPK (nitrogen, phosphorus, potash) production and Jordan’s JPMC has restarted production after a month-long scheduled maintenance.