Morocco’s OCP Sees 72% Revenue Surge as Ukraine War Boosts Phosphate Prices

In detail, OCP’s turnover reached 30.69 billion dirhams (2.8 billion euros) in the second quarter of 2022 compared to 18.19 billion dirhams (1.7 billion euros) in the first quarter. Moroccan phosphate sales increased in the first half of the year due to the "new increase in the global selling price" of phosphate, after the Russian invasion of Ukraine, OCP said in a note.

In its latest mid-term report published in August, the Directorate of Studies and Forecasts (DEPF) of the Moroccan Ministry of Economy and Finance explained that sales of raw phosphate, part of which is extracted in the Sahara, increased by 58.9% and those of phosphoric acid by 56.4% in the first six months of the year. As for exports of chemical products and natural fertilizers, they recorded an increase of 100.2%, due to "the price effect which has doubled," according to the DPEF.

Phosphate exports represent 26.7% of Morocco’s total exports in the first half of 2022, compared to 20.5% in the same period of 2021. Moreover, phosphate remains Morocco’s most exported product. Globally, phosphate prices reached $320 per tonne in July, the highest price since 2009. An increase caused by strong global demand, mainly from India and Latin American countries, and export restrictions from China and Russia.