India's low-priced phosphate fertiliser buy from China to set benchmark-sources
By Rajendra Jadhav
MUMBAI, Sept 9 (Reuters) - India has bought 160,000 tonnes of crop nutrient diammonium phosphate (DAP) from China at the lowest price in more than six years in deals that could set a price benchmark for other buyers, sources said.
Indian Potash Limited, Paradeep Phosphates Limited and Chambal Fertilisers and Chemicals bought the crop nutrient at $410 per tonne on CFR basis in deals done last week, sources with knowledge of the deals told Reuters.
Prices paid by India, the world's top DAP importer, were as much as $520 per tonne in May.
The deals could encourage other buyers in Asia and elsewhere to seek cuts in prices of existing long-term contracts and delay signing of new contracts.
It would also put pressure on fertiliser producers from Russia, Canada and the Middle East to drop their DAP prices, at a time when they are already seeing lower prices of mineral fertilizer ingredient potash after the break-up of Belarusian Potash Co.
"India bought four cargoes for prompt shipments. They managed to reduce the price to $410," said a New Delhi-based official with a global DAP supplier. "Since there is a glut in supplies in the world market and India is delaying purchases, sellers have little choice but to reduce the price."
DAP is the most widely used phosphate fertiliser in the world. Phosphate-based fertilisers are most commonly used along with nitrogen- and potash-based fertilisers.
India relies on imports for most of its DAP needs and accounts for nearly half of the nutrient's annual global shipments of around 16 million tonnes. Continued...