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CRU reports that overcapacity, led by OCP of Morocco ramping up new rock capacity, has driven traded phosphate rock prices sharply lower over the past year. Producers' margins are squeezed even though global average site costs fell 12% since 2014.
Impending EU regulatory changes could also reshape cost structures and trade flows.
Lower phosphate rock prices feed through to cheaper DAP and TSP inputs over time, but tighter EU rules could shift sourcing toward Russian material and raise costs in Europe.
crugroup.comAuthor Chris Lawson PhosphatesOct 11, 2017Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
