A Procurement Guide to DAP 18-46-0: Key Insights on Market Trends, Sourcing Strategies, and Cost Optimization

Introduction

With the continuous growth of global agricultural demand, fertilizers, as key factors for improving crop yield and quality, have gained increasing attention in the international market. Among various fertilizers, diammonium phosphate (DAP) has become one of the most important fertilizers worldwide due to its high efficiency, economy, and wide application. DAP not only provides nitrogen and phosphorus, two essential nutrients for crops, but also promotes root development and improves early-stage crop growth, making it an indispensable raw material in global agricultural production.

In the global fertilizer market, DAP production and trade are influenced by multiple factors, including supply from major producing countries, policies, transportation, external economic factors, and more. With the changing international trade landscape and increasing political risks, the price, supply chain, and purchasing strategies of DAP are undergoing unprecedented challenges.

This report systematically analyzes the market status and future trends of DAP 18-46-0, explores the supply and demand patterns of major producing countries, examines the fluctuations of market prices in recent years, analyzes external influencing factors, and provides recommendations for DAP purchasing and supply strategies in the coming years.

1. DAP Classification

Diammonium phosphate (DAP) can be classified from multiple dimensions, including nutrient content, granule shape, usage, and production process. A clear understanding of these classifications is crucial for purchasing, application, and end-user promotion.

1.1. By Nutrient Content

The most typical DAP product is DAP 18-46-0, containing 18% nitrogen and 46% phosphorus (as P₂O₅). This product has become the mainstream in international trade due to its balanced nitrogen-to-phosphorus ratio and mature production process.

In addition, there are the following variants:

• DAP 18-46-0: Usually results from slight variations in raw material quality or ammonia reaction ratios, mainly used for crops requiring higher phosphorus content;

• DAP 21-53-0: A less common high-concentration DAP, primarily produced through special reaction control conditions, suitable for horticultural crops in drip irrigation, greenhouse agriculture, or industrial uses. It is priced significantly higher than standard products.

1.2. By Granule Shape

• Standard Granules (2–4mm): Suitable for mechanical broadcasting equipment, widely used in major grain-producing areas;

• Crystal Type / Water-Soluble Powder: Used in industrial or specialty agricultural applications, such as foliar spraying and seedling-stage fertilization.

1.3. By Usage

• Agricultural Grade (Fertilizer Grade): Suitable for field crops, economic crops, and fruit and vegetable bases;

• Industrial Grade: Used in metal surface treatment, water treatment, fire retardants, and flue gas desulfurization.

1.4. By Solubility and Application Method

• Conventional DAP: Suitable for broadcasting and hole fertilization;

• Water-Soluble DAP: Suitable for modern agriculture’s sprinkler and drip irrigation systems, requiring higher purity, usually packaged as powder or small granules, with a relatively higher export price.

2. Why DAP 18-46-0 is One of the Most Widely Used Fertilizers Globally

DAP 18-46-0 occupies a central position in the global phosphate fertilizer market due to its inherent chemical properties and its multi-dimensional advantages in agricultural production. Below are three aspects explaining its widespread use: economic factors, functional benefits, and ease of use.

2.1. Economic Factors: High Nutrient Concentration Provides Transport and Application Cost Advantages

DAP 18-46-0 has a total nutrient content of 64%, meaning that a higher proportion of the weight is made up of effective nutrients that crops can use. Compared to some low-concentration compound fertilizers or single phosphorus fertilizers, the unit "phosphorus transportation cost" is significantly reduced, especially suitable for international trade and bulk agricultural use.

Additionally, since nitrogen and phosphorus are present in one product, farmers or agricultural service providers can reduce multiple procurement needs, saving operating and distribution costs.

2.2. Crop Functionality and Agricultural Effect: Root Development and Early Growth Improvement

All the nitrogen in DAP is in the ammonium form (NH₄⁺), which is quickly absorbed in the soil and is not easily lost. The 46% P₂O₅ is almost entirely water-soluble phosphorus, which is readily available to crops, making it essential for early crop growth.

• Phosphorus promotes root development, especially helping to form a healthy root system during the initial stages of seeding;

• Nitrogen enhances growth above the ground, delays leaf senescence, and improves photosynthetic efficiency;

• Its weak alkalinity (pH about 7.5–8.0) can buffer acidic soils, increasing the effectiveness of phosphorus in the soil.

2.3. Ease of Use: Compatible with Various Fertilization Systems

• Broadcasting: Used in combination with other nitrogen and potassium fertilizers to form local NPK systems;

• Trench/ Hole Fertilization: Applied directly to seedling trenches or near the crop roots to improve fertilizer utilization efficiency;

• Compound Fertilizer Raw Material: DAP is often used in compound fertilizer production, such as NPK 15-15-15, 20-20-0 formulations, serving as a phosphorus source;

• Drip Irrigation and Water-Fertilizer Integration Systems: Water-soluble DAP can be directly applied in modern facility agriculture.

2.4. High Market Acceptance: Easy to Promote, Globally Recognized

DAP was initially promoted by American and French fertilizer companies, and its brand effect and "technical trust" have been deeply rooted in agricultural users. It is one of the first choices for medium and large-scale growers and agricultural cooperatives.

In the agricultural technical promotion systems of many major agricultural countries, DAP has become part of basic knowledge, making it easy for technicians to promote, distributors to market, and farmers to understand and apply.

2.5. Relative Environmental Friendliness: Stable Nitrogen Form, No Phosphorus Volatilization

Compared to urea, DAP contains ammonium nitrogen, which does not volatilize into ammonia gas, making it more environmentally friendly. Additionally, phosphorus in DAP has low mobility, meaning it does not contribute to groundwater pollution. When applied properly, DAP can play a positive role in sustainable agricultural development.

3. Major Producing Countries of DAP 18-46-0

DAP 18-46-0 is primarily produced in a few major countries with abundant phosphate rock resources, ammonia production capabilities, and export channels. The following is an overview of the major DAP exporting countries and their market characteristics:

3.1. China

China has long been one of the world’s largest producers of DAP, with a complete phosphate chemical production chain and export capabilities. The main production areas are located in Yunnan, Guizhou, Sichuan, and Hubei.

• Export Advantages: Flexible prices, a wide range of product types, strong packaging customization capabilities;

• Limitations: Export quotas are periodically implemented, customs control is stringent, and policy interventions are significant;

• Market Distribution: Primarily exports to Southeast Asia, South Asia, Africa, and Latin America.

3.2. Morocco

Morocco is the world’s leading exporter of phosphate rock, with the state-owned company OCP dominating the country’s phosphate chemical industry.

• Export Advantages: Stable raw materials, high quality, global service capability;

• Customer Base: India, Brazil, Bangladesh, and African countries are the major markets;

• Product Type: Predominantly bulk granular DAP, with some water-soluble options available.

3.3. Saudi Arabia

Saudi Arabia, represented by Ma’aden, has quickly become a major exporter of DAP, relying on its rich phosphate rock and natural gas resources.

• Export Advantages: Stable supply of large granules, suitable for broadcasting in South Asia;

• Market Focus: Primarily serves India, Africa, and Pakistan;

• Logistics Advantage: Close to the Red Sea and Arabian Gulf, with well-developed port facilities.

3.4. Russia

Russia is a key player in DAP production and export, led by PhosAgro and EuroChem. PhosAgro, one of the world’s leading phosphate companies, has an integrated production chain from phosphate rock mining to DAP production, with products widely exported to the Middle East, Africa, Latin America, and Southeast Asia.

However, due to geopolitical factors and sanctions, Russian companies face challenges in DAP exports related to financial settlement and logistics. Most trade must rely on neutral channels in the Middle East or use alternative currencies such as RMB or AED for settlement. Moreover, some destination countries’ importers are cautious about Russian products, which may lead to issues with transparency and delivery timelines despite competitive CFR pricing.

3.5. United States

Led by Mosaic, the United States serves both the domestic and Latin American markets, with a more limited export volume globally. However, it still has significant influence in the high-end horticultural market and Latin American DAP supply.

• Market Model: Focuses on domestic sales and regional supply, especially in Brazil and other Latin American countries;

• Dominant Market: Dominates in Brazil’s fertilizer market;

• Product Type: Predominantly bulk granular DAP and MAP.

4. DAP Global Price Fluctuation Trends (2015–2025)

DAP, as one of the most important phosphate fertilizers globally, has experienced several periods of significant price volatility over the past decade. Its price trends are influenced by factors such as raw material costs, supply-demand dynamics, political risks, and global economic changes.

4.1. Ten-Year FOB Price Review (USD/Ton)

The table below summarizes the FOB price range of DAP from major exporting countries from 2015 to 2025 and the key influencing factors:

Year	Main FOB Price Range (USD/Ton)	Major Exporting Countries	Key Influencing Factors
2015–2019	300–350	China, Morocco, USA	Stable market, balanced supply and demand
2020	270–300	China, Morocco, Russia	Early impact of the pandemic, reduced demand, transport disruptions
2021	450–700	China, Saudi Arabia, Morocco	China export restrictions, rising raw material costs
2022	750–950	Saudi Arabia, Russia, Morocco	Russia-Ukraine war, energy crisis, soaring freight rates
2023	550–650	China, Morocco, Saudi Arabia	India tender weakness, China gradually lifting export restrictions
2024	520–600	Morocco, Saudi Arabia, Russia	Red Sea route disruptions, phosphate prices stay high
2025 Q1	520–580	China, Saudi Arabia, Russia	India subsidies return, market remains stable but sensitive

Data Source: Compiled from industry reports and international trade data

4.2. Key Price Drivers

4.2.1. Raw Material Cost Volatility

• Phosphoric acid (H₃PO₄) and ammonia are core raw materials for DAP, and fluctuations in their prices directly impact the cost of DAP production;

• For example, in 2022, the price of phosphoric acid in India’s CFR pricing exceeded $1,000 per ton, driving up DAP costs.

4.2.2. Freight and Shipping Market Volatility

• The pandemic and geopolitical risks caused container shortages, rerouted Red Sea traffic, and Black Sea blockages, increasing CFR costs for DAP;

• During the Red Sea crisis from 2022–2023, CFR pricing for some Morocco–India routes increased by over $40 per ton.

4.2.3. India Tender Mechanism and Its "Floor Price Effect"

• The Indian government’s annual subsidy price (NBS) directly influences the bidding process for DAP imports;

• When India’s tender frequency decreases, international suppliers often reduce prices to win contracts;

• If India’s government raises subsidies, global DAP FOB prices quickly rise.

4.2.4. Export Policies and Tariffs

• China and Russia periodically set temporary export tariffs, inspection measures, or export quotas;

• Such interventions lead to supply contractions and trade route restructuring, driving up international prices.

4.2.5. US Dollar Index and Settlement Currency

• DAP international trade is primarily conducted in US dollars, but in recent years, RMB, EUR, AED, and other currencies have gained ground;

• A stronger US dollar leads to increased import costs for non-dollar regions, compressing effective demand.

  
  

5. The Impact of Political and External Factors on DAP Trade

As one of the largest phosphate fertilizers in international trade, the price and supply of DAP are often heavily influenced by global geopolitical events, policy changes, and international regulations. This section systematically analyzes the key drivers of DAP price volatility.

5.1. The Russia-Ukraine War: Disruptions to the Black Sea Supply Chain

Since the outbreak of the Russia-Ukraine war in February 2022, the shipping and export settlements for DAP and related fertilizers in the Black Sea region have been heavily disrupted:

• Although Russia’s DAP exports have not been completely banned, Western banks have largely refused to provide financing via letters of credit, forcing traders to complete payments via RMB, AED, or other currency exchange platforms;

• Black Sea port loading capacities have decreased, forcing DAP exports to be rerouted through the Baltic Sea or Central Asia land routes, significantly increasing costs;

• Some buyers in non-settlement countries (such as in Latin America and Africa) have been forced to seek alternative suppliers, driving up market shares for Morocco, Saudi Arabia, and other countries.

5.2. China’s Export Policy Fluctuations

China, as the world’s largest producer of DAP, has a significant influence on global supply through its export policies:

• In 2021, China implemented an “export inspection + quota” policy, which controls the export of DAP to ensure sufficient supply for domestic agriculture during peak seasons;

• Export windows are not fixed, and customs clearance times are unpredictable, causing disruptions in international procurement cycles;

• Furthermore, some DAP products from China are limited to qualified factories, increasing the negotiation costs for buyers.

5.3. Red Sea Crisis Impacting Shipping Routes

Since the fourth quarter of 2023, attacks by Houthi rebels in the Red Sea have forced many shipping companies to reroute around the southern tip of Africa:

• Major DAP exporting countries such as Saudi Arabia, Morocco, and Egypt have been directly impacted, causing delays to shipments to India, Pakistan, and Bangladesh;

• Increased freight costs and shipping delays have pushed up CFR prices by more than $40 per ton in some cases;

• Traders have had to purchase in advance or switch to Southeast Asian or Chinese sources temporarily, leading to short-term disruptions in the supply chain.

5.4. The Dual Impact of the Pandemic on Logistics and Demand

The pandemic from 2020–2022 caused several disruptions to DAP international trade:

• Container shortages: Port congestion and insufficient container circulation caused delays in DAP export orders;

• Weakened demand: Governments in some developing countries suspended or reduced fertilizer subsidies, leading to a contraction in actual procurement volumes;

• Production adjustments: Some producers temporarily reduced production due to cost fluctuations or labor shortages, exacerbating market uncertainty.

5.5. The Global Influence of India’s Fertilizer Subsidy System

India is the world’s largest importer of DAP, and its policies have a “floor price” effect on global DAP prices:

• The Indian government’s annual subsidy price (NBS) directly affects the willingness of companies to bid for imports;

• When tender frequency is reduced, international suppliers tend to lower prices to win orders;

• If India’s government raises subsidies, global DAP FOB prices are quickly pushed higher.

6. Kelewell’s Supply Capacity and Service Overview

As a professional international fertilizer export platform, Kelewell is committed to providing customers with multi-source, compliant, and efficient DAP procurement solutions by leveraging a network of partners in different countries. This section outlines Kelewell's strengths in supply sources, compliance inspections, document support, and trade execution.

6.1. Multi-Country Supply Capacity

Kelewell can supply DAP 18-46-0 and water-soluble, high-purity variations from China, Saudi Arabia, Kazakhstan, the United States, and Egypt. These products serve key markets in Asia, Africa, South America, and Central Asia.

• China: Rich production resources and multiple ports for shipping, capable of meeting various packaging and branding requirements;

• Saudi Arabia and Egypt: Mainly provide bulk granular products, with logistical channels covering Africa, South Asia, and the Mediterranean region;

• Central Asia and the USA: Suitable for markets with specific policy requirements or high-purity needs.

6.2. Port Inspections and Compliance Documentation Services

Kelewell offers the following documents and inspection services at various export ports:

• Third-Party Inspection Services: Inspection agencies such as SGS, IQS, CIQ, and Intertek can perform pre-shipment inspections;

• Certificate of Origin: Kelewell can provide certificates of origin issued by the exporting country, such as China, the United States, and Kazakhstan;

• Export Documentation: Includes packing lists, commercial invoices, B/L drafts, and customs clearance support documents to ensure smooth customs processes at import ports.

7. DAP Future Market Trends and Purchasing Recommendations

With the ongoing global agricultural restructuring, geopolitical developments, and the green transition in the fertilizer industry, the market dynamics and procurement strategies for DAP 18-46-0 are undergoing significant changes. This section provides a systematic analysis of future DAP demand trends, supply patterns, policy risks, and purchasing strategies for the next 1–3 years.

7.1. Global Demand Trends: Shifting Toward Emerging Markets and Sustainable Agriculture

• Increased Demand in Africa and South Asia: Sub-Saharan Africa is in a dual-phase of "food security + agricultural development," where international development projects and local agricultural expansion are proceeding in parallel, leading to rising demand for DAP as a fundamental phosphorus fertilizer;

• Expansion of Horticultural Planting in Southeast Asia: The rapid growth of high-value crops and horticultural bases is driving higher standards for water-soluble and drip irrigation DAP products;

• Ongoing Demand from Traditional Markets (India, Pakistan): With population growth and food security strategies in place, these countries are expected to continue importing DAP at an annual scale of 7-10 million tons.

7.2. Supply Landscape Changes: Diversification, Risk Mitigation, and Regionalization

• China's Export Flow Remains Subject to National Policy Control: Each year, the export rhythm from China faces considerable uncertainty;

• Russia's Stable Supply Faces Payment and Credit System Barriers: Exporting through specific channels and settlement mechanisms will continue to be essential;

• Morocco and Egypt Will Become Major Suppliers for Africa and the Middle East: These countries’ geographical advantages allow them to serve multiple regions effectively;

• The Americas Will Focus on Regional Procurement: North America continues to supply South America, reducing dependency on long-distance shipping;

• Central Asia (Kazakhstan) Will Play a More Crucial “Regional Emergency Supply Role”.

7.3. Policy and Environmental Trends: Green Compliance Becomes a Key Requirement for Major Contracts

• Regulations like REACH Are Becoming Increasingly Important for DAP Exports: Future exports to the EU and other markets will require environmental safety and product registration documents;

• International Development Organizations (FAO, IFAD, World Bank) Are Putting Increasing Emphasis on Fertilizer Carbon Footprints and Traceability;

• Agriculture Ministries in Multiple Countries Are Setting Maximum Fertilizer and Phosphorus Input Limits: These measures will influence how DAP is promoted and applied in various regions.

7.4. Purchasing Recommendations: Balancing Stable Procurement and Risk Hedging

• Establish Dual-Channel Stocking Mechanism: We recommend that purchasers lock in core supply sources before major DAP demand seasons through contract price locking combined with spot market inquiries.

• Monitor Quota and Port Window Changes: For countries with sensitive policies, such as China and Russia, it is crucial to track export window openings and customs clearance periods closely.

• Use Multi-Currency Settlements or Letters of Credit: To mitigate geopolitical and financial risks associated with a single USD channel, it’s beneficial to use RMB, EUR, or AED in transactions.

• Focus on End-User Segmentation: For customers in drip irrigation and high-end planting, prioritize traceable, high-solubility products to increase repeat purchases and customer loyalty.

• Establish “Port + Inland” Linked Supply Mechanisms in the Long Term: Particularly for South Asia and Africa, establishing local warehouses or distribution hubs will help mitigate the impact of shipping fluctuations.

7.5. Challenges in Bulk Fertilizer Trade Amid the Rise of “De-globalization”

As the United States continues to implement tariffs, strengthen local manufacturing, and restrict the export of critical technologies and raw materials, the global trade structure is beginning to experience the effects of a "third wave of de-globalization." This trend will have multiple impacts on international DAP trade:

• Rising Trade Barriers: Some countries may introduce stricter environmental or product compliance standards, making it more difficult for low-cost DAP products to enter European and U.S. markets;

• Shift Toward Multi-Currency Settlement Systems: The politicization of the dollar as a payment tool encourages more frequent use of RMB, EUR, and AED in international DAP trade;

• Increased Regional Self-Sufficiency: Agricultural powerhouses like India and Brazil are accelerating local DAP production capacity and using policy support to reduce import reliance;

• Growing Logistics Chain Risks: With increasing port regulation and stricter origin requirements, cross-border shipping costs and clearance cycles will lengthen, posing challenges for smaller buyers.