Profercy Phosphates & NPK Report 13 Jan 2011It is reported,...

Profercy Phosphates & NPK Report 13 Jan 2011

It is reported, amongst other things, that Moroccan RP 31-33% is selling for US$155-165 fob. This is an increase, with more to follow IMO as DAP prices continue to rise as Northern Hem spring purchasing kicks in.

It is also reported that at press-time it was rumoured end of Jan (DAP) stocks in Pakistan are near zero.

More significantly; Indian DAP demand is up 6.6% while output is below forecast. One issue India is facing is supply restrictions from Iran on oil & to a lesser extent urea, which could spill over into the ammonia sector. Quoting from Profercy; "This is worrying India's phosphate industry as without Iranian product, ammonia prices would spiral at a time when it is trying to maximise DAP production. Ammonia prices have run up sharply elsewhere over the past week, with demand from the US and Europe strong and supply restricted in a number of areas - Algeria, Trinidad, Europe."

Finally I've been able to source Intersuisse's updated report on MAK, dated 13 Jan 2011, where they have increased MAK's NPV to $1.82 after accounting for all that has transpired since their last update. IMO they presented a fair assessment of the happenings of the last 3mths. Quite balanced.

MAK is poised and ready for a rerating.

Cheers