EABC eyeing switch to DAP from NPS in large tender

Ethiopian Agricultural Businesses (EABC) is preparing to seek DAP in its annual large-scale fertilizer tender, rather than NPS/NPSB, Argus understands.

Argus has been unable to confirm this with EABC. But several sources reported that the switch to DAP is being seriously considered, and one rated the change as highly likely.

Typically, the corporation seeks large amounts of NPS and NPSB, and Moroccan major fertilizer producer OCP is awarded the full volume. In its 2023 tender — issued in August — EABC requested a little over 1.02mn t of NPSB and 332,300t of NPS, as well as 980,000t of urea. The NPS grades that EABC receives contain nutrient values of around 19pc nitrogen, 38pc phosphorus and 7pc sulphur.

But it may be set to abandon complex fertilizers in favour of DAP this year. It is set to seek 800,000-1mn t of the phosphate product, one source said.

The switch should allow the process to be more unpredictable, with various producers vying for awards, rather than one manufacturer being all but certain to supply the full amount.

But global DAP supply is tight, keeping prices firm, which would make EABC's decision — if and when confirmed — all the more surprising.

OCP has already sold 510,000t of DAP for September-November shipment to India, which is short of the grade because of lower imports earlier in the year.

EABC is expected to issue its tender in the next two weeks.

By David Maher