Diammonium Phosphate (DAP) Pricing Report

Diammonium Phosphate (DAP) Prices December 2023

The price of diammonium phosphate (DAP) in the United States for Q4 2023 reached 558 USD/MT in December. The market in the United States witnessed a bullish trend due to the elevated price of essential feedstock ammonia and phosphoric acid, coupled with a shortage of supplies within the regional market. The expected increase in the price of ammonia and phosphoric acid within the country may lead to increased DAP prices.

The price of diammonium phosphate (DAP) in China for Q4 2023 reached 563 USD/MT in December. Diammonium phosphate imports to the international market increased marginally during this timeframe which exerted upward cost pressure on diammonium phosphate prices.

The price of diammonium phosphate (DAP) in Germany for Q4 2023 reached 665 USD/MT in December. Domestic demand for DAP in Germany remained moderate to low as end-user consumers in the fertilizer market maintained a reserve stance. The cautious approach taken by producers, influenced by mounting costs and logistics hurdles, contributed to the nuanced dynamics characterizing the German DAP market.

The price of diammonium phosphate (DAP) in the United States for Q4 2023 reached 585 USD/MT in December. The limited availability of spot DAP in November and the resumption of production activities in the leading ammonia and phosphate in Saudi Arabia led to a moderate to low supply situation in the country, exerting upward pressure on DAP prices.

Diammonium Phosphate (DAP) Price Trend, Market Analysis, and News

IMARC’s newly published report, titled Diammonium Phosphate (DAP) Pricing Report 2024: Price Trend, Chart, Market Analysis, News, Demand, Historical and Forecast Data, offers an in-depth analysis of diammonium phosphate (DAP) pricing, covering an analysis of global and regional market trends and the critical factors driving these price movements.

It encompasses an in-depth review of spot prices at major ports, a breakdown of prices including Ex Works, FOB, and CIF, alongside a region-wise dissection of price trends across North America, Europe, Asia Pacific, Latin America, the Middle East and Africa.

The report examines the elements influencing diammonium phosphate (DAP) price fluctuations, such as changes in raw material costs, supply-demand dynamics, geopolitical factors, and industry-specific developments. Additionally, it integrates the latest market news, providing stakeholders with up-to-date information on market shifts, regulatory changes, and technological advancements, thereby offering a comprehensive overview that aids in strategic decision-making and forecasting.

Diammonium Phosphate (DAP) Market Analysis

The global diammonium phosphate (DAP) market size reached US$ 44.9 Billion in 2023. By 2032, IMARC Group expects the market to reach US$ 65.6 Billion, at a projected CAGR of 4.30% during 2023-2032.

• The increasing food consumption represents one of the key factors influencing the growth of the market across the globe. This, coupled with the rising global population is driving the demand for fertilizers, such as DAP. The growing use of DAP in enhancing crop yield and quality is fueling the market growth. According to Invest India, India’s food processing sector is one of the largest across the globe and its output is expected to reach $535 Billion by 2025-26 which is further expected to support the growth of the market.
• The rising focus on the importance of nutrient management to improve crop yield with modern agricultural practices is contributing to the growth of the market. The balanced supply of nitrogen and phosphorus in DAP is making it an essential component of integrated nutrient management strategies which is fostering its demand among farmers seeking to optimize crop performance. According to the US Department of Agriculture (USDA), agriculture, food, and related industries contributed roughly $1.420 trillion to U.S. gross domestic product (GDP) in 2022, a 5.5% share. For instance, in 2022, Nutrien Ltd. announced that it was evaluating Geismar, LA as the site to build the world’s largest clean ammonia facility. Building on the company’s expertise in low-carbon ammonia production, clean ammonia will be manufactured using innovative technology to achieve at least a 90% reduction in CO2 emissions.
• The increasing emphasis on the mounting amount of cultivable land, especially in emerging economies, is driving the demand for fertilizers like DAP. This is primarily due to the need to ensure food and support rural development which is further propelling the market growth. According to the latest data available from the Union government, against the total agricultural land of 1,80, 888, thousand hectares, the cultivated land in India is 1,53,888 thousand hectares. Of the total available agricultural land 71, 554 thousand hectares, or only 40% is irrigated.

Diammonium Phosphate (DAP) News

The report covers the latest developments, updates, and trends impacting the global diammonium phosphate (DAP) market, providing stakeholders with timely and relevant information. This segment covers a wide array of news items, including the inauguration of new production facilities, advancements in diammonium phosphate (DAP) production technologies, strategic market expansions by key industry players, and significant mergers and acquisitions that shape the industry landscape.

Latest developments in the diammonium phosphate (DAP) industry:

• In March 2024, PhosAgro launched a new production facility at its Volkhov production complex. The new million-tonne plant will enable the company to meet the rising demand for Russian farmers for years to come while also boosting PhosAgro’s position as the leading supplier of mineral fertilizers to the Russian market.
• In February 2024, PhosAgro increased its production of agrochemical products to a record 11.3 million tons in 2023, the company’s CEO, Mikhail Rybnikov announced at a meeting of the Company's Management Board.

Product Description

Diammonium phosphate (DAP) plays a crucial role in global agriculture as the most popular and economical form of phosphate fertilizer.

DAP is an extensively employed inorganic compound, recognized by its chemical formula (NH4)2HPO4.

DAP is highly soluble and readily available to plants as a source of phosphorus and nitrogen, two essential nutrients that support root development and enhance crop yield.

It appears as a white crystalline powder and is applied to the soil, where it temporarily increases the soil pH, thus making it slightly more alkaline upon application but eventually becoming more neutral as the plant absorbs the nutrients.

The production of DAP includes the chemical reaction between ammonia and phosphoric acid under controlled conditions. Its ease of handling, storage, and application, coupled with its effectiveness as a fertilizer, is making DAP a preferred choice among farmers around the world.

Regional Coverage

The report provides a detailed analysis of the diammonium phosphate (DAP) market across different regions, each with unique pricing dynamics influenced by localized market conditions, supply chain intricacies, and geopolitical factors. This includes price trends and supply and demand trends for each region, along with spot prices by major ports. The report also provides coverage of ex-works, FOB, and CIF prices, as well as the key factors influencing the price trends. 

Global Diammonium Phosphate (DAP) Price

The report offers a holistic view of the global diammonium phosphate (DAP) pricing trends, reflecting the worldwide interplay of supply-demand balances, international trade policies, and overarching economic factors that shape the market on a macro level.

Europe Diammonium Phosphate (DAP) Price

The European region in the diammonium phosphate market experienced a continued uptrend during the fourth quarter of 2023. There was a scarcity of imported DAP, primarily owing to a temporary halt in ammonia production by Yara and decreased exports from European nations. This constrained supply, combined with escalated freight charges, led to robust bullish sentiment in the market. The closure of energy intensive facilities, such as ammonia plants, by BASF further impacted supply.

This analysis can be extended to include detailed diammonium phosphate (DAP) price information for a comprehensive list of countries.

North America Diammonium Phosphate (DAP) Price

During the fourth quarter of 2023, the diammonium phosphate (DAP) market in North America witnessed a bullish market situation, with the scarcity of key feedstock material, including natural gas and phosphoric, putting upward pressure on DAP prices. Transportation lines in the US remained constrained owing to low water levels in the Mississippi River and a short supply of railcars and truck availability. Buyers’ resistance to making bulk purchases led to the decline in import prices. However, November experienced a moderate increase, as the cost pressure of essential feedstock ammonia and phosphoric acid prices was limited during this timeframe.

Specific data on diammonium phosphate (DAP) prices within the United States and Canada can also be provided.

Middle East and Africa Diammonium Phosphate (DAP) Price

The diammonium phosphate (DAP) market in the Middle East and Africa (MEA) region experienced a bullish to balanced market, with a continued uptrend throughout November while maintaining stability during December. The demand from the international fertilizer market, especially India and Brazil, remained strong throughout the quarter, with no notable price fluctuation in the urea market. However, declining feedstock ammonia prices and ample availability of DAP in the global market led to a marginal stable market for DAP in December.

In addition to region-wise data, information on diammonium phosphate (DAP) prices for countries can also be provided.

Asia Pacific Diammonium Phosphate (DAP) Price

The diammonium phosphate (DAP) pricing in the Asia Pacific region experienced A bullish trend throughout the quarter of 2023 from October to December. During October, the rising prices of the vital raw material, phosphate rock, exerted upward pressure on the price of diammonium forfeit within the Chinese market. However, the market situation in China was more volatile in November, and the prices of DAP fluctuated due to the limited availability of products in the global market, factory equipment malfunctions, and partial sales stoppages.

This analysis can be further extended to include detailed diammonium phosphate (DAP) prices for a comprehensive list of countries within the region.

Latin America Diammonium Phosphate (DAP) Price

During the fourth quarter, the diammonium phosphate (DAP) market in the Latin American region experienced a bullish trend. Imported DAP supplies were scarce due to prolonged drought conditions in the Panama Canal, leading to limited exports to the region. The demand from the end-user fertilizer market remained subdued, as farmers were concerned about crop damage caused by the El Nilio-related drought. This combination of reduced supply and weakened demand exerted upward pressure on DAP prices.

This comprehensive review can be extended to include specific countries within the region.

Report Coverage

Key Benefits for Stakeholders:

• IMARC’s report presents a detailed analysis of diammonium phosphate (DAP) pricing, covering global and regional trends, spot prices at key ports, and a breakdown of Ex Works, FOB, and CIF prices.
• The study examines factors affecting diammonium phosphate (DAP) price volatility, including raw material costs, supply-demand shifts, geopolitical impacts, and industry developments, offering insights for informed decision-making.
• The competitive landscape review equips stakeholders with crucial insights into the latest market news, regulatory changes, and technological advancements, ensuring a well-rounded, strategic overview for forecasting and planning.
• IMARC offers various subscription options, including monthly, quarterly, and biannual updates, allowing clients to stay informed with the latest market trends, ongoing developments, and comprehensive market insights, ensuring they remain at the forefront of the diammonium phosphate (DAP) industry.