DAP fertilizer price once again surpasses the USD 700/ton mark

Data collected by the DTN fertilizer market tracking platform in the second week of September 2021 shows that the price of potash fertilizer has increased by more than 6% compared to the previous month, while the average price of fertilizers of all types is USD 598/ton.

The remaining seven types of fertilizer also experienced an increase in price, all at a rate below 5%. In particular, the average price of MAP fertilizer is USD 776/ton, urea fertilizer USD 572/ton, anhydrous fertilizer USD 762/ton, UAN28 USD 381/ton and UAN32 USD 428/ton.

Notably, the price of DAP fertilizer has increased by 1%, reaching USD 702/ton - the first time in 10 years. The average price of 10-34-0 fertilizer is USD 632/ton, also slightly higher. The last time phosphate fertilizer price was at such a high level was in the second week of December 2011 when the average price was also at 702 USD/ton.

Statistics show that the retail prices of all fertilizers have increased significantly compared to a year ago. To be more specific, 10-34-0 fertilizer is now 39% more expensive, urea 59%, DAP 62%, UAN32 69%, MAP 73%. The price of both potassium and UAN28 are 74% higher in comparison to 2020, while in the case of anhydrous fertilizer the increase rate in price is currently 77%.

According to experts, it is clear that a shortage of fertilizer supply may be imminent in the near future. Two major fertilizer producers announced last week that they would be closing facilities in Europe due to a relatively new problem facing fertilizer production - high natural gas price.

DAP fertilizer (diammonium phosphate, or diammonium hydrophosphate) is the most commonly used compound fertilizer in world agriculture with the composition of 18% N (Nitrogen), 46% P2O5 (phosphate).

MAP fertilizer is a granular monoammonium phosphate fertilizer that dissolves quickly in water or moist soil, which is important for agricultural purposes, serving as a source of nitrogen and phosphorus. The amount of nitrogen present in MAP fertilizers is about 10%, lower than DAP fertilizer. The ratio of P2O2 in MAP fertilizers usually ranges from 48 to 61%, which is the highest among the fertilizers currently available.