DAP and MAP prices were reduced to place product in European and Latin America but strong demand in the east permitted DAP prices to rise in India and Pakistan as India also accepted a $52 P2O5 increase for Q2 Moroccan phos acid.
OUTLOOK: Steady/firm east and steady/weak west
The main focus was on the IPL tender scheduled for 10 April. Even though 1.09 million t were bought at $259.97 cfr westcoast, $264.90 cfr east coast, $247 fob AG, this failed to have a positive impact on the market. NOLA granular prices remained soft with little activity owing to continued delays in the season. Brazil and Europe also provided little liquidity in April.
Whilst supply in the East tightened somewhat and spot sales were reported at $330 cfr in South Korea and Japan, prices in the west continued to fall with Yuzhnyy trading down to $215-220. The Middle East achieved a spot sale at $275 fob for a small volume whilst Tampa dropped another $20 to $255 cfr.
The remainder of Q2 looks set to remain steady with some upside risk in Southeast Asian tender prices. However, prices are likely to hit a ceiling in June/July as increased capacity looms on the horizon.
Following a quiet Q1 in the spot market with various turnarounds and tight supply reported, there is now more positive sentiment in the market with Chinese cfr prices ticking up to mid-high $130s cfr in the last two weeks and increased buying interest expected in the near-term.
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