DAP Market Sluggish at Both Home and Abroad

By CnAgri2013-07-16 11:08:34 Print DAP market was dominated by a recession in the first half of this year. It is currently the off-season of DAP consumption. Therefore, traders are not in a hurry to build up a stock for fall planting. DAP wholesale price has been on the fall recently.
 
DAP demand appears soft in the international market amid a stable price, with $461 ~ 471/MT (FOB) at US ports. Despite the low export tax season for Chinese DAP producers from mid May on, exports were difficult. Chinese DAP exporters’ quotation is $475 ~ 485/MT (64% nutrient) currently, equal to RMB2,600/MT, below the producer’s price of RMB2,700 ~ 2,750/MT in the domestic market. Major fertilizer export ports in China are stacked with huge piles of DAP.
 
DAP producers’ capacity utilization is about 50% currently, much lower than the same period of past years. With the decline of raw material price, DAP price is prone to slide further in the short run.

From “China Fertilizer Market Weekly Report”