PHOSPHATE MARKET SUMMARY

摘要

News that OCP had fnally agreed 1H phosphoric acid contracts in India at an elevated price of $805/t P2O5 cfr was initially greeted with some scepticism, given that it constituted a rise of $40/t P2O5 in an otherwise fat to bearish market worldwide. However, several factors were at work. Crucially, ammonia prices are eroding in India, which offsets the higher price of acid. And when raised MRP levels are taken into account, the new price more or less works for Indian DAP producers. Moreover, there was concern in India regarding production levels for March given the lack of acid supply, and some speculate that government intervention was also at work to get a settle- ment agreed. Either way, the news brings some stability to the market east of Suez.