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Diammonium phosphate price index

This post is a summary of the Diammonium phosphate (DAP) price developments. The price developments of Diammonium phosphate are expressed in US$ prices converted FX rates applicable at the time when the price was valid. Diammonium phosphate (DAP) price index developments are calculated from multiple separate sources of data to ensure statistical accuracy.

The outlook for Diammonium phosphate  prices, on the second tab, is generated from different inputs including:

  • Very recent price developments of immediate cost drivers of Diammonium phosphate (DAP) prices
  • Recent price developments of underlying feedstocks which drive the price of Diammonium phosphate
  • Market futures for both cost drives and feedstocks ofDiammonium phosphate (DAP) prices
  • Adjustment of current supply/demand imbalances in the Diammonium phosphate (DAP) market
  • Longer term trends in likely demand conditions

Further information on the Diammonium phosphate (DAP) price index

 

What is DAP

Diammonium phosphate (DAP) is a chemical compound that is commonly used as a fertiliser. It is composed of two molecules of ammonia and one molecule of phosphoric acid, and is commonly abbreviated as DAP. It is a source of both nitrogen and phosphorous, which are essential nutrients for plant growth. DAP is often used as a fertiliser in agriculture and horticulture, particularly for crops such as wheat, corn, and rice. It can also be used in other applications, such as in the production of animal feed and as a flame retardant. DAP is generally considered to be a safe and effective fertiliser when used as directed.

 

How is DAP produced

Diammonium phosphate (DAP) is produced through a chemical reaction between ammonia and phosphoric acid. The process usually begins with the production of ammonia, which is typically done through the Haber-Bosch process, in which nitrogen gas is reacted with hydrogen gas to produce ammonia. The ammonia is then combined with phosphoric acid, which is typically produced through the wet process, in which phosphate rock is treated with sulfuric acid to produce phosphoric acid. The ammonia and phosphoric acid are mixed together in a reactor, where they react to form diammonium phosphate. The resulting product is then dried and granulated to produce a finished fertiliser product. The exact process may vary depending on the specific manufacturer and the desired characteristics of the final product.

 

What is DAP used for

Diammonium phosphate (DAP) is a chemical compound that is commonly used as a fertiliser in agriculture and horticulture. It is a source of both nitrogen and phosphorous, which are essential nutrients for plant growth. DAP is often used to supplement soil that is low in these nutrients, particularly in crops such as wheat, corn, and rice. It can also be used to correct nutrient imbalances in soil, or to support the growth of specific types of plants that have specific nutrient requirements. In addition to its use as a fertiliser, DAP may also be used in other applications, such as in the production of animal feed and as a flame retardant.

 

How big is the DAP market

The market for fertilisers, including diammonium phosphate (DAP), is significant, as fertilisers are an essential component of modern agriculture. The demand for fertilisers is driven by the need to increase crop yields and support the growing global population. According to data from the Food and Agriculture Organization of the United Nations (FAO), the global demand for fertilisers is expected to continue to grow in the coming years, particularly in developing countries where the demand for food is increasing. In 2019, the global market for fertilisers was valued at around $200 billion, and it is expected to grow to around $320 billion by 2024. DAP is one of the most widely used fertilisers, and it is a significant component of the overall fertiliser market.

According to https://oec.world/ :

Diammonium phosphate, in packs >10 kg are the world’s 504th most traded product.

In 2020, the top exporters of Diammonium phosphate, in packs >10 kg were China ($1.81B), Morocco ($1.45B), Saudi Arabia ($827M), Russia ($445M), and United States ($280M).

In 2020, the top importers of Diammonium phosphate, in packs >10 kg were India ($1.86B), Pakistan ($390M), United States ($289M), Vietnam ($227M), and Bangladesh ($198M).

Further information

 

 

 

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Notes on the price-data

  • We are continually improving our data collection and processing methods and data will be updated from time to time as we improve the accuracy
  • We are working hard to upgrade the algorithm before April 1, 2023 and a further fine-tune by July 1, 2023
  • This the index trend of the price of the product group in general and not a single specification in particular
  • The data is presented in US$
  • The chart shows the price trend,  nearly always taken from many statistically-correlated sources