Coromandel India Q3 Phosphoric Acid Contract Price Rises 25% to $1,700/t

en.Wedoany.com Reported - India's third-quarter benchmark phosphoric acid contract price rose 25% to $1,700 per tonne P₂O₅ CFR, with Coromandel International and Jordan Phosphate Mines Company (JPMC) signing the July-September contract under 30-day credit terms, according to Argus Media. The new price is $340 higher than the second quarter's $1,360 per tonne, which had already increased from the first quarter's $1,290 per tonne in the Coromandel-Nutrien agreement.

The price hike is primarily driven by rising sulfur costs, a key raw material for phosphoric acid production. Dry bulk sulfur delivered to Indian ports rose approximately 49% in the second quarter. Abu Dhabi National Oil Company (Adnoc) set its July sulfur contract price at a record $1,000 per tonne FOB Ruwais, up $140 per tonne from June. As phosphoric acid is the main raw material for diammonium phosphate (DAP), the higher contract price is expected to increase DAP production costs during India's peak monsoon sowing season, when fertilizer demand is highest.

Market participants expect phosphatic fertilizer input costs to remain high in the third quarter, as sulfur supply remains limited and freight rates and risk premiums related to the Strait of Hormuz decline only gradually.