LONDON (ICIS)--The phosphates market has been supported by some activity in India this week, although the rest of the world continues to be subdued.
- Pakistan buys Chinese DAP cargo
- Chinese market stable on limited global demand
- Ma’aden ships cargoes to India, Australia and Latin America
A few diammonium phosphate (DAP) cargoes have been sold to India from China and Saudi Arabia, bringing the total of imports in the first quarter to 1m tonnes.
The rest of the month is expected to be subdued in India and buyers are expected to return to the market in April, as requirements are covered so far.
In China, the market is subdued, as apart from the few cargoes to India and Pakistan demand is down.
Producers are shipping previous orders in anticipation of fresh demand globally.
Demand in Australia seems to have come to an end, as it is slowly moving out of the import season.
West of Suez, the Tampa DAP price has dropped following lower export offers from Mosaic and a lack of business.
In the domestic market, DAP and monoammonium phosphate (MAP) barges continue to trickle through the system on the Mississippi river amid anticipation of healthy demand for spring when the adverse weather improves.
“There is more softness to come,” a US-based trader said, however.
In Brazil, the MAP market is under pressure following sales of Mexican and Russian material.
Demand is expected to return soon for the soybean season, as producers get ready to ship product to the region.
On the supply side, most producers are comfortable for April.
Ma’aden is sending cargoes to India, Australia and Latin America, while EuroChem ships MAP to Brazil.
Following Mosaic’s cut of phosphates production for spring, there is talk in the market of a production cut from OCP and also a plan to reduce phosphates production in China.
Considering the low demand globally, market players said that this move is expected and will not affect the market much.
Focus article by Sylvia Traganida
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