China: DAP under pressure but MAP stays firm

摘要

Lowest offers in this week’s tender in Bangladesh mostly equate to a netback in the low $460s/mt FOB. However, the lowest price offered by Hubei Dongsheng should theoretically give a straight netback to $455/mt FOB but this is said by the industry to be unreflective of the market today in China. Nevertheless, renewed pressure will start to weigh on prices in the Indian market with further rupee weakness this week combined with the IMD’s latest downgrade of this year’s monsoon. This has already led some importers to indicate numbers as low as the mid $450s/mt CFR. These two variable factors are expected to result in some correction in price going forward, possibly around $5-7/mt, which will impact Chinese FOB values accordingly.