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.
Ethiopia’s EABC seeks DAP in tender
Ethiopia’s EABC seeks DAP in tender
London, 29 August (Argus) — Ethiopian Agricultural Businesses (EABC) has likely issued a tender to buy 360,000t of DAP, closing on 9 September. Sources expect EABC to issue further tenders to bring the total volume of phosphate-containing fertilizers sought to 800,000-1.36mn t for delivery in 2024-25. But it is uncertain if additional tenders will also be for DAP or for NPS/NPSB. Typically, the corporation seeks large amounts of NPS and NPSB in its annual large-scale tender, and Moroccan major fertilizer producer OCP is awarded the full volume. In its 2023 tender — issued in August — EABC requested a little over 1.02mn t of NPSB and 332,300t of NPS, as well as 980,000t of urea. But reports emerged earlier this week that EABC was preparing to seek DAP instead. By Tom Hampson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
EABC eyeing switch to DAP from NPS in large tender
EABC eyeing switch to DAP from NPS in large tender
London, 28 August (Argus) — Ethiopian Agricultural Businesses (EABC) is preparing to seek DAP in its annual large-scale fertilizer tender, rather than NPS/NPSB, Argus understands. Argus has been unable to confirm this with EABC. But several sources reported that the switch to DAP is being seriously considered, and one rated the change as highly likely. Typically, the corporation seeks large amounts of NPS and NPSB, and Moroccan major fertilizer producer OCP is awarded the full volume. In its 2023 tender — issued in August — EABC requested a little over 1.02mn t of NPSB and 332,300t of NPS, as well as 980,000t of urea. The NPS grades that EABC receives contain nutrient values of around 19pc nitrogen, 38pc phosphorus and 7pc sulphur. But it may be set to abandon complex fertilizers in favour of DAP this year. It is set to seek 800,000-1mn t of the phosphate product, one source said. The switch should allow the process to be more unpredictable, with various producers vying for awards, rather than one manufacturer being all but certain to supply the full amount. But global DAP supply is tight, keeping prices firm, which would make EABC's decision — if and when confirmed — all the more surprising. OCP has already sold 510,000t of DAP for September-November shipment to India, which is short of the grade because of lower imports earlier in the year. EABC is expected to issue its tender in the next two weeks. By David Maher Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
India’s DAP stocks draw down further
India’s DAP stocks draw down further
London, 20 August (Argus) — India's DAP fertilizer stocks fell by another 300,000t in July, Fertilizer Association of India (FAI) data show, as imports kept lagging those in 2023 owing to a subsidy that makes them unviable. This was the second month in a row that stocks have fallen during the kharif season (April-September), with June seeing inventories down by 430,000t. India made 373,300t of DAP in July, imported 348,000t and sold just over 1mn t. The stockdraw/build — production plus imports minus offtake — was thus minus 296,300t. Argus estimated stocks at a modest 2mn t as of the end of July, with indications that they have since dropped to 1.5mn t as of mid-August. The catalyst has been a lack of imports. With Chinese DAP export supply thin, fob values from that origin have risen well above $600/t fob. Latest DAP import sales were made in a $618-625/t cfr range, whereas the subsidy makes any deal above $545/t cfr unviable for importers. This has restricted buyers to government-backed companies and the very largest DAP importers. Cumulative imports for the fertilizer this year to date — since April — reached 1.47mn t, compared with just over 2.7mn t in the same period of 2023, the FAI data show. DAP production has also lagged slightly, at 1.37mn t in April-July, compared with 1.62mn t in the same period last year, as raw material shipments were affected by the Houthi attacks on Red Sea shipping, affecting supply of phosphoric acid, a key raw material for DAP production in India. Stocks would have been lower still had it not been for lower offtake overall, at 2.94mn t in April-July, compared with 3.43mn t in the same period last year. Lower offtake is partly the result of less supply and buyers switching to NPK products for which stocks are higher. By Mike Nash Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Indian July DAP stocks fall on the month to 2mn t
Indian July DAP stocks fall on the month to 2mn t
London, 6 August (Argus) — Indian DAP stocks continued declining in July and fell well below their levels of a year ago, led by a year-on-year drop in imports and domestic output. Stocks at the end of July fell to around 2mn t from 2.3mn t at the end of June, and well below the 3.6mn t a year ago, provisional government data show. DAP offtake was around 1mn t in July compared with 1.26mn t in July last year, but outstripped combined production and imports by around 250,000t. Domestic output totalled 373,000t, lower than the 437,000t in July last year . And imports fell to a three-month low of 377,000t, according to line-up data, well below the 571,000t imported last year. So far this year, monthly DAP imports have consistently remained below their 2023 equivalent. India has struggled to import DAP because the maximum retail price and nutrient-based subsidy mean current cfr prices — last done at $590s/t last week for Saudi product — equate to a substantial loss for importers. Even with the potential introduction of a special additional subsidy for DAP , the breakeven price for imported DAP would only be raised to the mid-high $540s/t cfr. Major Indian importers are currently negotiating a purchase of 300,000-500,000t of DAP with Morocco's OCP for arrival until the end of December. But these volumes alone would not be sufficient to push up stocks in the coming months if other imports and domestic output stagnate. Offtake typically exceeds 1mn t/month over September-November. By Adrien Seewald Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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