Phosphates
Overview
The global phosphates market has witnessed increasing volatility, in response to military conflicts, political tensions and changing market dynamics. Price fluctuations have continued to buffet the market, with increasing demand from south and Southeast Asia the main regions driving consumption growth. Rising raw material prices and improved affordability have lifted prices once again.
Phosphates' usage is also not solely limited to fertilizers. Battery-material suppliers are increasingly seeking to source phosphate rock and specialty phosphates-based products to meet the rapidly rising demand for lithium-iron-phosphate batteries for electric vehicle production.
Our extensive phosphates coverage includes DAP, MAP, TSP and SSP, as well as raw materials phosphate rock and phosphoric acid, with assessments also spanning feed products MCP and DCP. Argus has many decades of experience covering the phosphates market and incorporate our multi-commodity market expertise in key areas including sulphur and ammonia to provide the full market narrative.
Argus support market participants with:
- Daily and weekly phosphates price assessments, proprietary data and market commentary
- Short and medium to long-term forecasting, modelling and analysis of processed phosphate and phosphate rock prices, supply, demand, trade and projects
- Bespoke consulting project support
Latest phosphate news
Browse the latest market moving news on the global phosphate industry.
India’s Hurl issues new tender for DAP
India’s Hurl issues new tender for DAP
London, 8 October (Argus) — Indian fertilizer importer Hindustan Urvarak and Rasayan (Hurl) has issued a fresh tender to buy 100,000t of DAP in two 50,000t shipments, closing on 11 October. Hurl is seeking black/brown DAP in the tender for shipment within 25 days from issuing the letter of intent or purchase order. It wants one 50,000t lot to be shipped to India's east coast — expressing a preference for Paradip — and the other 50,000t lot to be shipped to India's west coast, with a preference for Kandla. Suppliers can offer a minimum quantity of 25,000t, and offers must be valid for 10 days after opening. Hurl and fellow importer NFL closed tenders to buy 40,000t and 100,000t, respectively, of DAP today. But they have not yet opened the offers under the tenders. By Tom Hampson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Hurricane Milton to further disrupt phosphate output
Hurricane Milton to further disrupt phosphate output
Houston, 7 October (Argus) — The US phosphate market anticipates Hurricane Milton's Florida landfall later this week will cause further disruptions to regional production as the Tampa area continues to recover from Hurricane Helene. Hurricane Milton intensified to a category 5 storm today in US Gulf waters and is on track to make landfall around the Tampa Bay area Wednesday evening as a category 3 hurricane, the National Weather Service said. Phosphate traders expect the storm will only further tighten the market as major fertilizer producers work to overcome production losses and power outages endured during Hurricane Helene on 26 September. One phosphate trader called the incoming storm "devastating", considering it will exacerbate existing fourth quarter scarcity from ongoing outages at Nutrien's White Springs and Mosaic's Riverview facilities. The area surrounding Tampa Bay is home to three major phosphate processing facilities owned by producer Mosaic — with capacity totaling 5.7mn metric tonnes (t)/year — and the mines that feed them. Finished phosphate product is shipped across the US by rail to end users and exported by vessel from the port. Mosaic's Riverview facility in Tampa experienced water intrusion from storm surge during Hurricane Helene but was expected to be back to full production sometime this week, according to the company. The producer also expected some late third quarter shipments to be pushed into the fourth quarter because of the Tampa port closure. Fellow fertilizer producer Nutrien's White Springs phosphate facility is located north of Tampa and was still assessing damage following Hurricane Helene as of today, the company said. White Springs has annual production capacity of 2mn t/year. Nutrien said it is also monitoring Hurricane Milton's path and has emergency safety measures in place for the storm. Further production disruptions are likely with the arrival of Hurricane Milton. Fertilizer production sites in the path of major storms curb operations as a precaution and then have to assess and repair damage before restarting. There is an increasing risk of life-threatening storm surge and damaging winds for portions of the west coast of the Florida peninsula beginning Tuesday night or Wednesday morning, the NWS said. Storm surge in the Tampa Bay area could reach between 8-12ft, compared to storm surge of around 6ft from Helene. Portions of Florida can expect heavy rainfall today ahead of Milton, as well as later this week. Additionally, unlike with Helene, Mosaic's Bartow and New Wales facilities located further inland from Riverview are directly in the path of Milton on its current trajectory. If the storm stays on its current track, it will be the worst storm to hit the Tampa area in 100 years, the NWS said. Hurricane Ian damaged phosphate facilities in 2022 , causing Mosaic to reduce fourth quarter production guidance by 200,000-250,000t after the storm moved east across the Tampa Bay area. Florida ports are beginning to limit operations ahead of the storm. Port Tampa Bay initiated its Port Heavy Weather Advisory Group, which closely monitors impacts to the port and waterways in response to Hurricane Milton. Inbound and outbound vessel traffic to the port remains open and operations will continue "as long as safely possible," the port said. SeaPort Manatee is also open to vessel and landside traffic. Both ports will likely take further precautions closer to Milton's landfall. Mosaic did not respond to request for comment on the precautions it is taking for Milton. By Taylor Zavala Hurricane Milton projected path Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Tampa molten sulphur price rises for 4Q
Tampa molten sulphur price rises for 4Q
Houston, 2 October (Argus) — Fertilizer producers Mosaic and Nutrien have settled the fourth quarter molten sulphur price with their suppliers at $116/long tonne (lt) delivered. The new settlement marks an increase of $40/lt from the third quarter price of $76/lt del, and follows the trend of firming sulphur markets during the third quarter amid resilient global fertilizer demand. Despite an active hurricane season in the US Gulf coast, disruptions to output have remained short-lived. But damage from Hurricane Helene last month has caused significant disruption to fertilizer production in the southeast US, with operations at two Florida-based phosphate fertilizer production facilities hampered. Mosaic's Riverview, Florida, facility is expected to return to normal capacity during the first half of October following water mitigation and site cleanup. Damage at Nutrien's White Springs, Florida, plant is still being assessed, with no clear timeline of when it will resume normal operations. Global solid sulphur contracts are beginning to settle for supply delivered during the fourth quarter at corresponding rises, with Middle East contracts rising by $39-43/t from the previous quarter to reach $110-122/t fob for Middle East for tonnes delivered to end users and traders. Additionally, delivered quantities for the north African market have been discussed in a range of mid-$130s to high $140s/t cfr depending on destination and cargo size for granular product from the FSU and the Middle East, though final confirmations remain outstanding. Crushed lump sulphur is expected to be priced below granular sulphur at the low end of the range. Some contract supply routes have not as yet been confirmed as having been finalized. By Chris Mullins and Maria Mosquera Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Argentine DAP/MAP imports could climb in coming months
Argentine DAP/MAP imports could climb in coming months
London, 30 September (Argus) — Argentina's DAP and MAP imports have remained below normal so far this year, and buyers have been on the sidelines since August in particular. But an increase in soybean planting could see sales rebound in the fourth quarter. Phosphates purchases were slow in August because importers were delaying purchases in anticipation of a government announcement about an import tax reduction. The government announced on 2 September that import tariffs would be reduced from 17.5pc to 7.5pc. But despite that buying has remained slow because of unfavourable crop prices and sowing conditions. Argentina imported 32,000t of MAP in August, the lowest of any August since 2008, according to GTT data. MAP imports in January-August totalled 476,000t, down significantly from the 555,000t average for January-August 2019-23. MAP imports in the same period last year — 484,000t — were also below norms because of an abnormally dry climate and the increased risk of leafhopper swarms damaging crops. DAP imports were also down in August at 15,000t, compared with the 2019-23 August average of 36,000t. DAP imports in January-August totalled 210,000t, slightly above 208,000t in the same period last year but below the 243,000t average for the same period in 2019-23. Above-normal July DAP/MAP imports, which totalled 195,000t, only helped to offset some of the deficit over the first half of the year. DAP/MAP deliveries look sluggish in September-October Adverse conditions delaying planting, combined with soft corn prices, have pushed back demand for fertilizers. Upriver corn prices saw a 13pc year-on-year decline to $198/t fob upriver Argentina as of 26 September. Concerns have been aggravated by the rising frequency of crop destruction by leafhoppers, as well as dry weather, with the country's farmland recording scant rainfall in the past few months. The chances of the country experiencing another La Nina spring phenomenon are high, meaning low rainfall and increased risk of frost, which would lead to a poor corn harvest. These factors have further increased farmers' reluctance to buy DAP/MAP. Local sources expect that the national corn acreage will be reduced by 1mn-2mn hectares (ha) this year because of late planting. At least 128,000t of DAP/MAP is scheduled for arrival in Argentina in September-October, according to line-up and LHB data. But in 2019-23, the country imported an average of 54,000t of DAP and 228,000t of MAP in the same period, according to GTT data. Increased reliance on soybean crops could support DAP/MAP imports A shift towards increased soybean planting could lift the country's need for phosphate-based fertilizers and boost P2O5 demand until the end of the year. Farmers will increase the soybean-planted area by 1.7mn ha at the expense of corn, as the economics of the former are more favourable than the latter, according to the Buenos Aires Grain Exchange (Bage). The exchange added that the majority of soybean hectares have a greater than 60pc chance of breaking even, while the odds are less than 50pc for the majority of corn hectares. Local sources expect that between 500,000 ha and 1mn ha of corn acreage can be replaced with soybean crops this season. For the 2024-25 marketing year, Argentina is projected to increase the national soybean area by 9.8pc to 19mn ha, according to a Bage outlook. And the US Department of Agrciculture expects Argentina's soybean output to reach 51mn t for this season, up from 48.1mn t last year. But delays in reaching a decision on which crop to plant limits the amount of fertilizer that can arrive in time, with local market participants citing concerns about a potential logistical bottleneck before the planting period in late 2024. DAP/MAP imports typically peak over May-October and decline around November. By Renata Cardarelli and Adrien Seewald Argentina August DAP-MAP imports '000t Argentina monthly DAP-MAP imports '000t Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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