China: Production set for DAP exports build

摘要

The Chinese domestic DAP season is drawing to a close and suppliers have increased the allocation of production for the export market to around 60% on average. Most producers are understood to have observed the production agreement made in November 2016, with average country-wide production rates reported at 70-75% of overall capacity. Despite the last agreed price floor from Chinese producers at $370/mt FOB in March, suppliers are now officially offering around $360/mt FOB and are understood to be willing to sell around $5/mt below this.