Bull run continues with new sales at $900/t cfr

摘要

Sales this week into Pakistan at the $900/t cfr marker confirm market concerns of ever-rising landed costs, particularly to markets on the Indian Subcontinent, despite softening freight costs. Relentless demand continues to drive the market, which in turn is tightening DAP/MAP availability at the major sources of supply such as the US, FSU and North Africa. Reduced availability is also seen in China, where recent harsh weather has led to a number of production shutdowns. The Government's revised export tax policy which is likely to go into effect after the Chinese New Year will undoubtedly reduce exports of not only Chinese DAP/MAP but also of other phosphate products with a minimum 25% P2O5 content, as these will be subject to a rate of taxation of 30-35%.