Interesting info from another phosphate stock I hold.in short -...

Interesting info from another phosphate stock I hold.

in short - a lot of money being invested into fertiliser. At the same time there's a shortage of phosphate and yellow phosphorus driving up prices of both.




"In the last month phosphate market dynamics have changed significantly, with the key drivers for this as follows:

• China effectively halted phosphate fertilizer exports in response to increasing domestic prices for phosphate rock and phosphate fertilizers. The price increases are driven by dwindling phosphate rock supply and increased demand from the fertilizer and yellow phosphorus sectors. China last year exported approximately 6Mtpa, down from 9Mtpa as recently as 2019, and further decreases are anticipated.

• In the regional South Atlantic and SADC markets we are seeing enquiries for phosphate rock which is likely driven by the prospective loss of the Chinese seaborne phosphate units.

• In the local context the Lobito rail Corridor from Angola to DRC and Zambia has now attracted $1.6 billion in funding with the most recent commitment coming from the USA at a meeting between Presidents Biden and Lourenço in

Washington. The increasing certainty of the development opens up the prospect for fertilizer sales along the corridor.

In the medium term, increased yellow phosphorus demand for LiFeP batteries and dwindling phosphate rock resources in China is likely to result in higher prices for phosphate rock and fertilizer in global markets."