# Capacity consolidation dominant trend in the feed phosphates market

> CRU analyst Chris Lawson says the phosphates market recovered somewhat in 2020 after a difficult 2019 marked by weak demand and new capacity in Morocco and Saudi Arabia. Idled Chinese capacity and COVID-19 lockdowns tightened supply, while fertiliser demand has been strong. Few new capacity projects are expected in 2020 or 2021.

- Date: 2020-09-10 · published 2020-09-10T12:00:00.000Z
- Category: market · region Global · magnitude low
- Page: https://feedsoft.ai/events/51419-capacity-consolidation-dominant-trend-in-the-feed-phosphates-market
- Commodities: [Phosphate Rock](https://feedsoft.ai/c/PHOSROCK.md), [DAP](https://feedsoft.ai/c/DAP.md)

## Why it matters

Limited new phosphate capacity and tighter Chinese supply support higher feed phosphate prices. Buyers should expect firmer DCP and MCP costs in the near term.

## Read by commodity

- DAP: bullish ▲
- PHOSROCK: bullish ▲

## Sources

- agtechnavigator.com: https://www.agtechnavigator.com/Article/2020/09/10/capacity-consolidation-dominant-trend-in-the-feed-phosphates-market/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.