Pressure builds on prices as OCP sells DAP to India

摘要

Price pressure is building on a range of DAP markets following low Chinese-backed DAP offers in last week's major Bangladesh tender and news that OCP has begun to export DAP to India. With demand likely to remain weak through the remainder of the second quarter and no major cuts in production planned, producers have a difficult period ahead. Awards are believed to have been sent out in the Bangladesh DAP tender for 350,000 mt. At least nine of the 10 lowest offers are said to have been firmly backed by Chinese DAP producers netting back around $318-325/mt FOB. Still, outside of Bangladesh, Chinese offers remain at $335-340/mt FOB and traders have struggled to secure product below $332/mt FOB in China for tenders and spot sales to India and elsewhere. As pressure builds due to weak demand and quite strong production remaining in China, it is likely offers to other markets will be in the $320s/mt FOB.