Increasing prices and limited supply has hit the business
Indian state owned importers National Fertilizers Limited (NFL) and Gujarat State Fertilizer & Chemicals Limited (GSFC) have reissued their respective tenders to buy 10,000t of Diammonium phosphate (DAP) after their initial tenders did not receive any offers. Due to the new government rule on public procurement which does not allow Chinese producers and Chinese-owned firms from participating, both importers are not likely to receive many offers.
The limited availability of DAP for September shipment can be deduced from the fact that even trading firms without Chinese ownership did not submit offers under NFL’s tender. Indications for DAP in India have risen to the mid-$330s/t cfr, but latest concluded business haven’t touched $330/t cfr.
In Pakistan, importer Pakarab has reissued its tender to buy 100,000t of DAP. Chinese producers are focusing on their domestic market and are waiting for prices to rise further before selling the few remaining September-loading vessels. Several Chinese producers have withdrawn their tenders for September shipment. Indications have risen to the high/mid-$320s/t fob though confirmed sales are yet to increase beyond $320/t fob.
