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You can unsubscribe from these updates at any time. We manage your personal data in accordance with our privacy policy.Abu Dhabi's state-owned Adnoc set its January official sulphur selling price (OSP) for the Indian subcontinent at $174/t fob Ruwais, up by $9/t from its December OSP of $165/t fob.
Adnoc's January OSP implies a delivered price of $191-193/t cfr India, with the freight cost for a 40,000-45,000t shipment to the east coast of India having last been assessed at $17-19/t on 19 December.
The announced OSP fob price has risen by $97/t in the space of a year, from $77/t fob Ruwais in January last year.
London, 3 April (Argus) — Rebuilding India's DAP inventories remains an uphill struggle as the latest subsidies and current market prices keep importers' and many producers' margins in the red, despite a rise in the subsidy. India will have to keep relying on NPKs/NPs to cover much of its phosphate needs. The Indian government has set the nutrient-based subsidy (NBS) for DAP for the April-September kharif season at 27,799 rupees/t. This is an increase of Rs5,888/t from the base subsidy for the October-March rabi season. The government will probably extend the Rs3,500/t special additional subsidy for DAP into kharif, bringing the total subsidy for DAP up to Rs31,299/t. The maximum retail price (MRP) for DAP will remain at Rs27,000/t. DAP importers face losses The new subsidy rate, including the special additional subsidy, brings the breakeven import price for DAP to the low $600s/t cfr at the current exchange rate and MRP. This is well below the latest concluded level in the high $640s/t cfr, and almost $60/t below latest offers. Without the Rs3,500/t special additional subsidy, the breakeven import price would be around $563/t cfr. The government will probably commit to compensating importers for losses on DAP over kharif, but there has not yet been official confirmation. The department of fertilizers said in September last year that it would compensate importers for losses on DAP over rabi. But some importers said that they have not yet received this compensation. NPKs more attractive for many producers Indian DAP producers using phosphoric acid and ammonia imported at $1,153/t P2O5 cfr and $350/t cfr, respectively, now face losses of $25/t, given the current NBS, MRP and exchange rate. The second-quarter contract price for merchant-grade phosphoric acid to India is up by $98/t P2O5 from the first-quarter price of $1,055/t P2O5 cfr. The rise in the acid price was driven by soaring sulphur costs, firmer sentiment for DAP and falling ammonia prices — which are down from a midpoint of $440/t cfr at the start of the calendar year. Those producers using phosphoric acid will be drawn to the profits to be gained from making NPKs. The new subsidies for 10-26-26 and 12-32-16 are Rs16,257/t and Rs19,495/t, respectively. Both grades have an MRP of Rs35,000/t. At current phosphoric acid, ammonia and potash — with MOP at $283/t cfr with 180 days credit — import costs and exchange rates, Indian producers would see profits of around $48/t for 10-26-26 and $54/t for 12-32-16. DAP producers using imported phosphate rock, sulphur and ammonia will make a profit. Producers importing 30-31pc P2O5 phosphate rock at $153/t cfr, dry bulk sulphur at $280/t and ammonia at $350/t cfr now see margins of around $66/t. Phosphate rock prices have held broadly steady over recent quarters. The fall in ammonia costs has helped to counter the bull run in the global sulphur market, which has pushed up dry bulk sulphur cfr prices in India by $91/t at the midpoint since the beginning of 2025. Without the Rs3,500/t special additional subsidy on DAP, the loss for producers using imported phosphoric acid and ammonia would rise to around $66/t. And the margin for producers using imported phosphate rock, sulphur and ammonia would fall to around $25/t. Producers generally cannot switch between using phosphoric acid and using phosphate rock and sulphur. The Indian government did not cover the losses incurred by DAP producers over rabi — forcing many producers to turn to making NPKs/NPs instead. Although speculation has emerged that the government will compensate producers over kharif, there has been no official indication either way. DAP stocks to remain low Provisional data indicate that India ended March with around 1.3mn t of DAP in stock, still well below the perceived comfortable minimum of 2mn t. Indian distributors will want to build DAP stocks ahead of the peak offtake season — beginning around June. But while importers and producers continue to face losses, stocks will remain low and many farmers will again have to settle for NPKs/NPs as an alternative source of phosphate. By Tom Hampson Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
London, 3 April (Argus) — European sulphur and sulphuric acid marketer and distributor Aglobis announced today the signing of an extended basic agreement with engineering service provider ECM to develop its 400,000 t/yr sulphur remelter plant in Duisburg, Germany. Under this agreement, Sulphurnet will act as a sub-contractor to ECM, for sulphur processing technology. Construction is expected to start in 7–8 months following planning and technical design. Engineering activities have already started. This follows the announcement in early January of an agreement with Engie Deutschland for energy provision in the form of steam and utilities for its planned Duisburg sulphur remelter. By Maria Mosquera Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
London, 3 April (Argus) — Low offtake in the first quarter of 2025 allowed Indian DAP stocks to build to about 1.3mn t by the end of the fertilizer year in March, but lower production and imports have put a ceiling to stock building, according to provisional data. DAP reserves began this month at 1.29mn t, with provisional offtake, production and import data suggesting a stock drawdown — production plus imports minus sales — of 12,000t on the month. Provisional March DAP offtake totalled 280,000t, bringing offtake this quarter to 978,000t, well below the 1.4mn t/yr average in 2021-24. In the fertilizer year spanning April 2024-March 2025, national offtake totalled 9.3mn t, compared with 10.8mn t in the previous year. A lack of DAP availability across parts of India, spurred by low imports and domestic production, has supported interest in NPKs. Domestic DAP output in March totalled 118,000t, reaching 3.76mn t in April 2024-March 2025. This is below the 4.2mn t/yr average in April 2020-March 2024. And March DAP imports totalled 150,000t, with 4.7mn t imported over April 2024-March 2025, line-up data show. This is well below the 5.6mn t/yr average in April 2020-March 2024. DAP importers and producers using phosphoric acid faced negative margins in most of the fertilizer year, given the maximum retail price, nutrient-based subsidy, exchange rates and market cfr prices for DAP and raw materials. This drove private-sector importers out of the market and encouraged producers using imported phosphoric acid to focus their output on NPKs, which gave better margins. Importers appear to have been dissuaded by high international DAP cfr prices in particular. The Indian DAP assessment peaked in October — during the high buying season — at $643/t cfr on a midpoint basis, remaining below $600/t cfr a year before. And prices were prevented from slipping in the off-season, supported by the absence of Chinese DAP exports and Ethiopia's switch to DAP imports from NPS. The assessed range has firmed in recent weeks, with Saudi Arabian producer Ma'aden selling 50,000t of DAP to an Indian importer in the high $640s/t cfr for loading in early April . DAP offers are now as high as $660/t cfr. DAP stocks are now well below a comfortable 2mn t, and India will have to keep building reserves in its off-season before farmers' demand picks up around the middle of the year. The Indian government at the end of March raised the nutrient-based subsidy for phosphates for the kharif season by 42pc. At current market prices, DAP importers' margins will remain negative. The government will probably continue to compensate importers for losses on DAP, but there is no indication that Indian DAP producers will receive compensation for losses. By Adrien Seewald Indian DAP stocks and sales '000t Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
London, 3 April (Argus) — Sulphur from Canada, which is by far the US' largest supplier, is not expected to be covered by the sweeping tariffs announced by President Donald Trump on 2 April. US sulphur imports from Canada totalled 830,000t in 2024 according to the US Geological Survey, with the rest of the world supplying just 60,000t. Trump exempted many energy and mineral products from tariffs unveiled on 2 April. Sulphur was not on the list of exemptions, but is understood to be covered by the US-Mexico-Canada free trade agreement, so should continue to be imported without tariffs. Sulphur imports from countries other than Canada and Mexico are believed to be subject to a 25pc tariff. US sulphur consumers would face higher prices if Canadian flows are subject to tariffs at a later date. Trump has threatened Canada and Mexico with further tariffs. He briefly imposed a 25pc levy on sulphur from Canada in February, only to suspend this days later. By Maria Mosquera Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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