Diammonium Phosphate (DAP) prices have been fluctuating as agricultural demand cycles, raw material costs, and global trade flows shift. Seasonal fertilizer application periods in major agricultural economies, along with changes in ammonia and phosphoric acid feedstock costs, play a central role in price movements. Procurement teams, distributors, and large-scale farmers closely monitor the DAP (Diammonium Phosphate) Price Trend to make informed purchase timing decisions and optimize cost efficiency.
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Recent Developments Impacting Short-Term Prices
Over the past months,
global DAP prices have been influenced by:
- Higher feedstock costs for ammonia and phosphoric acid due to energy market volatility.
- Strong seasonal demand from major crop-planting regions in Asia, North America, and Latin America.
- Trade policy adjustments, including export restrictions and tariff changes from key producing countries.
- Freight market fluctuations affecting landed costs, particularly for import-dependent nations.
Major suppliers in China, Morocco, and the United States are adjusting production schedules in response to demand forecasts and inventory positions, leading to periodic price adjustments in both domestic and export markets.
Market Analysis: supply-demand balance and cost structure
DAP is produced by reacting ammonia with phosphoric acid, making its production costs highly sensitive to:
- Ammonia prices, which track natural gas markets.
- Phosphoric acid prices, which depend on phosphate rock supply and sulfuric acid costs.
- Energy expenses for drying and granulating the product.
- Logistics and handling charges for bulk shipments.
Demand is primarily driven by agriculture, where DAP serves as a key source of nitrogen and phosphorus for crops. Industrial uses, while smaller, include flame retardants and metal treatment processes.
Historical Trends and Forecasting Signals
Historical data shows that DAP prices typically rise during peak agricultural seasons and when feedstock markets experience supply tightness. Forecasting models for DAP incorporate:
- Seasonal planting schedules in major agricultural economies.
- Production and export capacity changes in leading manufacturing countries.
- Input cost forecasts for ammonia, phosphate rock, and sulfur.
- Weather conditions affecting crop planting and fertilizer demand.
Periods where strong global demand overlaps with limited production capacity can lead to sustained price increases.
Price Database and Charting Recommendations
A comprehensive
DAP price database should track:
- Regional spot and contract prices (FOB, CIF, ex-works).
- Monthly and quarterly averages for trend identification.
- Correlation with ammonia, phosphoric acid, and phosphate rock markets.
- Freight rates for bulk fertilizer shipments.
Charts should display both a short-term (12-month) view for tactical planning and a long-term (36-month) view for strategic procurement.
Procurement Insights and Buying Strategies
Agribusiness procurement teams often secure pre-season contracts to lock in favorable rates before peak demand. Diversifying supplier sources across regions can help mitigate risk from export restrictions or logistical bottlenecks. Leveraging
Procurement Resource methodologies enables better benchmarking of landed costs, supplier reliability, and risk exposure to feedstock price volatility.
Regional Insights
Asia-Pacific
China and India remain the largest consumers, with seasonal planting cycles creating predictable demand spikes. Chinese export policies have a significant influence on global prices.
Europe
Fertilizer demand is steady, with imports primarily from North Africa and the Black Sea region. Environmental regulations and carbon costs are influencing production economics.
North America
Strong seasonal demand from the corn and soybean sectors supports prices, while domestic production in the US offsets some import needs.
Middle East and Africa
Morocco and Saudi Arabia are key producers and exporters, while several African nations remain import-dependent. Infrastructure and port capacity can impact delivered costs.
Latin America
Brazil is a major DAP importer, with demand peaking ahead of soybean and corn planting seasons. Currency exchange rates and freight costs play a critical role in pricing.
Using the DAP (Diammonium Phosphate) Price Trend anchor
Embedding the
DAP (Diammonium Phosphate) Price Trend link in market reports, procurement dashboards, or internal trade bulletins ensures quick access to real-time pricing for decision-makers.
Forecasting Framework for DAP
An effective
DAP forecast should combine agricultural seasonality models, feedstock price tracking, freight rate monitoring, and policy analysis for major producers and exporters.
Data Consistency Checklist
- Standardize prices by basis and unit (USD/MT, FOB/CIF).
- Tag prices with delivery terms and region for accurate comparisons.
- Validate significant price changes against documented events like feedstock cost spikes or export restrictions.
Contact Information
Company Name: Procurement Resource
Contact Person: Ashish Sharma (Sales Representative)
Email: sales@procurementresource.com
Location: 30 North Gould Street, Sheridan, WY 82801, USA
Phone:
UK: +44 7537171117
USA: +1 307 363 1045
Asia-Pacific (APAC): +91 1203185500
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