For the First Quarter of 2022
As a consequence of the Russia-Ukraine war, the energy and fertilizer prices increased. Russia is major exporter of phosphates, responsible for around 4 million tonnes of DAP and MAP exports. The war affected the phosphate supplies which increased MAP prices.
Fertilizer prices have increased by 300% in the last year. Some of the increase can be attributed to supply chain issues. However, the Russia-Ukraine conflict is exacerbating this trend. MAP prices were up 10% in March from the previous month, with an average price of 1,018 USD/MT.
For the Fourth Quarter of 2021
China had decided to ban phosphate exports to keep down the domestic prices. Australia is mainly dependent on China with a monthly average of 65% of MAP imports. The fertilizer costs increased in the region amid rising prices of natural gas and coal along with supply shortages.
In Europe, the fertilizer production was halted in December 2021, as many manufacturing facilities could not keep up with the rising energy prices. This contributed to the global fertilizer shortage and increased the price of fertilizers. DAP prices had almost doubled in Europe in a period of 18 months. Sanctions on imports from Belarus were also a factor in the rise of price in the region.
DAP witnessed a growth of price from 421 USD/MT in the beginning of the year to 745 USD, rising by 76% to a 13 year high. Morocco phosphate rock prices climbed from 83.33 USD/MT to 176.67 USD/MT, rising by 112% on a year-to-year basis.
In December, the MAP prices in Brazil had climbed to 858 USD/MT (up by almost 450 USD/MT) backed by global shortages. Even though the market was going through an off-season purchasing period, the prices were at record high levels in Brazil in Q4 2021.
For First, Second and Third Quarters of 2021
Suez Canal was blocked in the beginning of the year which caused logistic issues and increased the freight costs. However, the costs came down after China decided to suspend exports which strongly affected the phosphate prices as China is responsible for 30% of the global supply with 90 MMT of annual production. Exports were halted to build domestic stores of the chemical to ensure food supply in future. Exports from China were drastically reduced in 2021. Australia was impacted by the global shortage of monoammonium and diammonium phosphate grades- MAP and DAP, causing prices to rise in in the region to about 675 USD/MT excluding freight costs. MAP prices increased after the prices of upstream ammonia increased as a result of soaring prices of natural gas.
The natural gas shortage in Europe drove up the prices in the downstream fertilizer industries with an increase in the prices of ammonia, a key raw material in the production of MAP. Europe is mostly dependent on imports, but major phosphate producing countries like China and Russia reduced their exports, leading to a price increase in the region.
In the first quarter of 2021, US authorities imposed 20% import duties on Moroccan phosphates and about 10-47% import duties on the Russian ones. This brought down the exports from Morocco and Russia. By the end of the second quarter, DAP prices in the US were around 604.75 USD as costs for farming input, energy and freight transport costs increased. In the third quarter, the phosphate sector had been affected by the challenges posed by the Hurricane Ida as a major American producer Mosaic reported a negative impact on production and operations. As a result of the hurricane, production was cut down by 300,000 tonnes. In August, MAP prices increased to 755 USD/MT. As compared to September 2020, the price had risen by 125%.
The phosphate import in Brazil in the first three quarters of 2021 was 7.8 MMT, up by 1.7 MMT on a year-on-year basis. The demand was high, but the production was low which drove up the import volumes in the country.
For the Year 2020
China, a major producer, consumer and exporter of phosphate had been heavily affected by the pandemic in the first quarter of 2020, which impacted the phosphate industry as prices witnessed decade-long lows in the beginning of the year. Most plants started to close in Hubei, a major phosphate producing region in the country. As lockdowns and restrictions affected the supplies, the price began to rise in April 2020. Other problems like delay in shipments and disruptions in transportations were also major contributors to the price rise.
Logistic issues were also faced in India, a major producer and importer of the chemical, as most migrant workers returned home due to the lockdowns causing supply chain disruptions. The demand kept rising amid tight supplies which aggravated MAP prices in the region. The Hubei province in China is responsible for about 30% of the phosphate production. However, the Chinese market rebounded in the second half of the year, as production activities resumed in the region. The production mainly focused at the domestic market and price for phosphate exports were increased steadily. The demand and price for corn, soybean and other phosphate-intensive crops increased which also boosted the its market in the region.
Countries like Russia faced shortages in phosphate supplies, as a result of supply chain disruptions from major exporting countries like Europe and India. Russia was the fourth largest phosphate producer in the world in 2020 with a tally of 13 MMT.
The price of phosphate rock climbed to 83.33 USD by the end of 2020. The price had begun to rise in the second half of the year after the economies started to recover from the loss in the beginning of the year due to the pandemic. Supplies were tight and the demand was high which benefitted the fertilizer industry. The DAP price in US had reached 388.50 USD/MT in December, rising from 245 USD/MT in the beginning of the year.
Procurement Resource provides latest prices of Monoammonium Phosphate (MAP). Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.
Procurement Resource provides prices of Monoammonium Phosphate (MAP) for several regions around the globe, which are as follows:
About Monoammonium Phosphate (MAP):
Monoammonium Phosphate is dissolvable in water. It crystallises from water as the anhydrous salt in the tetragonal system, as elongated prisms or needles. However, it is practically insoluble in ethanol. Solid form of Mono Ammonium Phosphate is considered stable in practice for temperatures up to 200 °C.
Chemical Formula of Monoammonium Phosphate (MAP):
Monoammonium Phosphate is prepared by a reaction of anhydrous ammonia and phosphoric acid in batch or continuous reactors. Since the partial pressure of ammonia over this acidic solution is relatively low, it is further crystallised in traditional crystallisers.
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The displayed pricing data is derived through weighted average purchase price, including contract and spot transactions at the specified locations unless otherwise stated. The information provided comes from the compilation and processing of commercial data officially reported for each nation (i.e. government agencies, external trade bodies, and industry publications).
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