S&P drops two Morocco-linked fertilizer price benchmarks as trade flows shift
Two benchmarks used to track Moroccan fertilizer prices will be discontinued this Thursday, October 1. Platts, a division of S&P Global Energy, is ending publication of the assessments because trade flows have changed. They were calculated using the U.S. market in New Orleans.
The change affects two phosphate fertilizers: diammonium phosphate, or DAP, and monoammonium phosphate, or MAP. Platts confirmed in a note published on October 1 that it was ending the assessments known as “FOB Morocco, Bulk, NOLA netback.”
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Their distinguishing feature was that they used prices observed in New Orleans to calculate a value for shipments from Morocco. The calculation included, among other things, the costs of ocean freight, unloading and customs duties.
According to the Platts methodology guide, this mechanism made it possible to convert a U.S. quotation into an estimate at Morocco’s port of Jorf Lasfar.
Morocco-origin price assessments remain
Platts is, however, retaining its standard assessments for bulk DAP and MAP shipped from Morocco. The change applies specifically to the two benchmarks calculated from the U.S. market, identified in its publications by the codes FDPBC04 and FMAPC04.
The data provider says the decision is due to changes in fertilizer trade flows. The two series were included in its phosphate market report and its price database.
Their removal was proposed on June 9 and confirmed on June 30. The note published today marks the decision’s implementation, three months after it was announced.
