ocp seeking a $25-30/t rp price increase

Following is an encouraging report prepared & circulated by Edwin Chee, Chemicals and Fertilizers analyst, BMO Capital Markets last night on the likely price increases for Q3/11 for various phosphate products:

"OCP is reportedly seeking a $25-30/tonne price increase (from Q2/11) for phosphate rock, bringing it to approximately $200/tonne fob Casablanca. Indicative pricing for Q2/11 is $170-180/tonne for 69% BPL or 31.6% P2O5. According to FMB, the new price that is being sought by OCP has already been accepted by some North American buyers. For phosphoric acid, FMB has indicated that OCP is seeking a $100/tonne (P2O5) increase for Q3/11 on the $980/tonne price in Q2/11 cfr India. So far, an agreement for Q3 has not been achieved and the current fixed DAP price of $612/tonne cfr India until September may hinder this targeted increase. In Q2, phosphoric acid prices (P2O5) elsewhere are $1,100-1,140/tonne cfr W. Europe and $1,070-1,100/tonne cfr Brazil. With ammonia price indications cfr India at $515-546/tonne, the sought-after +$100/tonne acid price increase would raise India?s non-integrated estimated raw material costs to just above $612/tonne and all-in costs to roughly $650/tonne. With strong demand and tight supply in India, we may be pleasantly surprised to see H2/11-12 Indian DAP contract prices drift upward toward this level."

Things continue to line up nicely for MAK as we progress thru the enabling study & towards JV with NMDC. If global markets don't meltdown & rain on our parade and instead firm up & move past their most recent volatility, then the stage is set for a strong rerating of MAK as JV drops into place in Q4. World Bank Commod Prices due soon, but I suspect the latest increases won't show for a month or two, as tends to be the case in their reporting.

Good luck to all.

Cheers