LONDON (ICIS)–The phosphates market has turned a corner this week with prices firming in most regions, sources said on Friday.
In Pakistan, diammonium phosphate (DAP) prices are going up following a Chinese deal for November shipment. Demand in the country has remained steady and is expected to continue until the end of the year.
The Indian market continues to be firm, with DAP offers heard higher this week, but there has been no new business this week, despite Indian stocks being low.
However, buyers can afford to wait until December to make purchases, as requirements are covered until then with previous purchases.
Chinese DAP free on board (FOB) offers are going up on higher sulphur prices, with producers offering at higher levels in India and Pakistan where demand is picking up.
However, availability out of China remains tight and prices are expected to strengthen soon.
West of Suez, the market is firming and the Tampa DAP price has climbed $20/tonne on the high end following a deal from Mosaic to Latin America.
The producer increased its offer price out of Tampa to $375/tonne FOB (free on board).
In the domestic market, the DAP barge prices are edging upwards due to limited availability.
Mosaic has also increased its offer prices at Nola for DAP and MAP as well as in central Florida for truck business.
In Brazil, monoammonium phosphate (MAP) prices are firming on a notional basis as Russian and Moroccan offers edge upwards.
However, there are no new deals heard at these levels, and buyers will soon need to return to the market and make purchases for the safrinha corn season early next year.
On the supply side, most producers are sold out and global availability remains tight.
Russia’s PhosAgro has its next availability for December and is assessing the market at the moment, while North African producers are offering DAP to Europe at higher levels.
Nevertheless, it remains to be seen whether buyers will accept these increases or prefer to wait.
“Crazy [price] levels apparently due to shortage of sulphur, [but] no deals at those levels,” a European-based trader said.