In March 2025, the Saudi Arabian Diammonium Phosphate (DAP) market showed stable prices. Market dynamics were balanced as higher sales were seen in Southeast Asia and Iraq, while lower sales were seen in India which offset any price fluctuations.  

The DAP prices in the Middle East are expected to rise in the upcoming months because of firm demand from the agriculture sector and foreseen surge in freight costs, and expected changes in OCP’s supply agreement with India.

The demand for DAP in the regional market remained steady due to the consistent need for nutrients in vegetable farming. Meanwhile, international demand increased because of higher stocking and export restrictions from China, a major exporter. This rise in demand follows the usual pattern in Asia, where farmers prepare for planting seasons in the second quarter of the year. This includes planting rice, vegetables, and fruit trees. The combination of stockpiling and seasonal needs has led to a steady global demand for DAP.

On the supply side, DAP production rates in Saudi Arabia remained moderate due to inconsistent supply of feedstock Phosphoric Acid. Meanwhile, another feedstock ammonia supply remained ample due to lower demand. This raised Ammonia inventory levels in the region and negatively impacted the production costs.

Additionally, Ma'aden, a major Saudi Arabian phosphate producer and exporter, shipped significant volumes of DAP to countries including India, Southeast Asia, Iraq, and Bangladesh to meet the needs of different regional markets. In March, Ma'aden finalized a sale of DAP for shipment, to various international markets. Indian fertilizer company IPL secured a large portion of this shipment. Ma'aden also reported sales to the United States and Argentina.

Moroccan DAP exports remained steady, with OCP, Morocco's leading phosphate producer maintaining strong sales to Europe, to stabilize the global DAP supply. OCP’s production capacity and expected exports for 2025 helped to meet global fertilizer demand.

The Middle Eastern DAP market is likely to see price increases due to a combination of factors. Rising regional demand, driven by intensified agricultural efforts to boost crop yields, is a primary driver. Production costs would also rise due to projected increases in the price of the feedstock phosphoric acid.  Increased shipping activity throughout the summer is also anticipated to result in higher freight charges.  Market players should therefore get ready for potential DAP price rises. There are reports that OCP is in talks for a supply agreement with India, which could affect global DAP trade and prices in the coming months.