As much of the industry gathers in China this week, the main topic is the Chinese DAP price going forward. Chinese producers are holding firm on the DAP price in the range of $460-470/mt FOB. There have been rumours of sales concluded in the mid $470s/mt CFR India but as yet no firm evidence to back them up. Indian buyers are putting pressure on the Chinese to drop the price below $480/mt CFR, a price which gives a netback in the mid-high $460s/mt FOB China excluding traders' margin. Hubei producers generally have a freight advantage but producers like YUC are not only selling direct but also ship panamax vessels, again giving a more attractive netback.
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