Key facts
- NCIC sold 21,000t of DAP at $915-920/t fob.
- NCIC sold 27,000t of CAN 26 at $250-270/t fob.
- NCIC sold 500t of water-soluble SOP at $750/t bagged ex-works.
Egyptian fertilizer producer NCIC has awarded sales of 21,000t of DAP, 27,000t of CAN, and 500t of water-soluble SOP in its latest tender. DAP prices saw a significant increase compared to previous sales.
The sales indicate firming prices for key fertilizers like DAP, driven by demand and potentially squeezed margins for producers due to raw material costs. The increased volumes for CAN suggest strong demand for that product.
Egyptian fertilizer producer NCIC has reported awards from its sales tender that closed on August 11. The company sold 21,000 metric tons of diammonium phosphate (DAP) at prices ranging from $915 to $920 per ton free on board (fob). Additionally, 27,000 metric tons of calcium ammonium nitrate (CAN) 26 were sold at $250-270/t fob, and 500 metric tons of water-soluble single superphosphate (SOP) were sold at $750/t bagged ex-works.
The DAP price represents a significant increase compared to NCIC's previous tender on July 20, where awards were between $890-900/t fob. The awarded volume for DAP was slightly higher than the initial offer. For CAN, the price was broadly steady, but the awarded volume nearly tripled the initial offer of 10,000t. The SOP price also saw an increase from the July 20 tender, where 500t were awarded at $730/t bagged ex-works, though the volume awarded in the latest tender was half of what was offered.
Buyers have not yet confirmed the awards, and the destinations for the sold products remain unknown. NCIC also offered 10,000t of triple superphosphate (TSP) and 30,000t of single superphosphate (SSP) but did not award these products, likely due to prices not meeting expectations. Prices for TSP and SSP have been under pressure in Brazil, a key destination market, while the cost of sulfur, a raw material for phosphates, has remained firm in Egypt, impacting production margins.