Department of Commerce levies phosphate import duties

The US Department of Commerce today published a preliminary duty of 23.46pc on imports from Morocco's OCP, 72.5pc on Russia's EuroChem and 20.94pc on Russia's Phosagro.

US phosphate prices leapt by around $10/st at Nola on the news, with February futures at $380/st fob Nola and March at $384/st fob.

These duties will likely discourage shipments from subject countries at current price levels, returning the US Gulf coast to a net discount to Brazil on a cfr equivalent basis.

The Department of Commerce is scheduled to make a final decision on 8 February 2021, with the International Trade Commission's final decision on 25 March 2021 and the exercise to conclude on 1 April 2021.

Buyers this season had been hesitant to commit to large volumes of MAP and DAP because of the risk of carrying high-priced inventory into the new year, when a resurgence of shipments from Morocco and Russia could pressure prices.

By Jasmine Davis