News: Phosphate fertilizer prices tick higher

  1. Phosphate nutrient and fertilizer prices inched up in August with DAP and TSP prices +1% m/m.

    Phosphate rock, DAP and TSP prices are now up 9%, 37% and 40% YTD.

    The rebound in first half of 2014 was off 3‐year record lows in November 2013 and due to strong global demand, plant outages, harsh weather in North America and Morocco, and higher sulphur prices, notably in China.

    Phosphate rock prices peaked in March and have levelled off due to seasonal pressures.

    However, phosphate rock prices have started to move up again, increasing 2% w/w to $113/t for the week ending Sept 5, 2014.

    Phosphate fertilizer demand is expected to remain strong (+2% y/y to 65mln‐66mln t DAP/MAP/TSP in 2014 as per Mosaic); however, potential factors impacting price could be the India monsoon (potential to be below average this year and push out purchases), Chinese phosphate exports, geopolitical problems and near term soft commodity prices.

    Morocco is home to the largest phosphate ore reserves in the world (~84% of global reserves), China is the largest global producer of phosphate rock (39%), followed by the US (15%) and then Morocco (14%). That being said, China and the US consume the majority of their own rock.

    Most phosphate rock is consumed internally to produce P2O5 fertilizers.

    Phosphorus is one of three essential elements in fertilizer production. The other two elements are Potassium (commonly referred to as “potash” when in potassium chloride form) and nitrogen.

    The main source of phosphorous is phosphate rock.

    Some 75 per cent of the Australian market for phosphates (as phosphorus) is supplied by locally manufactured superphosphate with the balance by imports of ammonium phosphates.

    The Australian market for phosphate fertiliser is around 350 000 tonnes as phosphorous - equivalent to 4 million tonnes of superphosphate.

     

    Source in part: Aguia Resources

 
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