My pleasure Saracen.Just been reading thru the latest Profercy...

My pleasure Saracen.

Just been reading thru the latest Profercy Phosphate report dated 1 Sep 2011. It continues to report a strengthening of demand & prices.
Specifically:
- They confirm the Phoschem/IPL & IFFCO deal of 1m tonnes at $677pt cfr, and also report "but India needs more."
- They mention the tender refloat in Ethiopia, which could be for a purchase of up to 750,000t of DAP
- "US Exports: A fresh, US export DAP sale to Mexico is heard through Trammo at $650 pt fob Pascagoula. Total US exports in August look set to surpass 500,000t DAP/MAP from all load points (Tampa, Morehead City & Pascagoula). This follows a firm line-up of contract and captivesystem
volumes to India, Australia, Japan, Brazil, and spot sales to other markets."
- "China Domestic: While toughened export tax regulations this year have cut offshore sales, they have done little to halt increases in local DAP prices, up again to end August."
- "Europe: OCP has already settled about 60,000t DAP/MAP to load in September to nearby markets. This is in numerous minor lots from East Europe (Black Sea and Med) across to Northwest Europe (France, Benelux). This is all heard at roll-over prices from August at $700-705pt fob Jorf Lasfar. There is ongoing contact with Italian
importers, still concerned over the lack of clarity over Tunisian DAP; execution of the existing business and scope for new sales in October."
- "Turkey: UralChem is linked with new DAP business to Turkey, via a trader for a small 6,000t lot, reflecting the mid $690s pt fob Black Sea."

Price summary at end of report included the following:
- Tampa DAP 1 Sep, $650-655pt fob
- Moroccan Rock 31-33% for Q3 $185-205pt fob, and
- Moroccan Phosacid, Q3 $980-1,165pt fob (this is a $70-90pt increase on Q2)

Of particular note in the report was notice of an upcoming report on the phosphates sector thru to 2015. Here's wat it had to say:

"Profercy?fs First Major Phosphates Sector Outlook Report
The story of phosphates to 2015 is one of booming demand, moderate net supply increases, and robust producer pricing power. This major new report maps surging global demand prospects against all three levels of the phosphates horizon: rock, acid, and fertilizers: Amid game-changing
risks in economics, politics and the environment, this report addresses:
?? Demand explosion for food, feed & fuel ?? Implications for P2O5 usage ?? Bigpicture supply analysis: A new rock age dawns ?? Can firm, new mine & downstream process capacity keep pace? ?? Is China nearing its ?gP2O5 ceiling?h?
?? Implications for China phosphate fertilizer exports & taxation ?? Prospects for Saudi DAP absorption ?? New Moroccan DAP/MAP capacity: How much is new
P2O5? ?? Florida rock challenges & outlook ?? US farm economics & price tolerance levels ?? Global Rock & DAP cost curve ?? Newly researched world capacity lists:
DAP, MAP, TSP ?? World DAP trade matrix: month-by-month breakdown ?? Price forecasts to 2015 for rock, phosacid, DAP, MAP, TSP & SSP.

Full content & purchase details on this major new report to follow."

You can safely assume I'll be aiming to get my hands on this report! I particualry love the bit about "A new rock age dawns". This is why I have continued to strengthen my position in MAK over the years. The story is becoming even more compelling as we have expected.

GL to all.

Cheers