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China, Russia, and Morocco are the leading exporters of Diammonium Phosphate, collectively accounting for over 60% of global exports in recent years, while India, Brazil, and the United States represent the largest importers by volume and value. Global Diammonium Phosphate prices have shown increased volatility since mid-2023, correlating with shifts in export volumes from major producers and heightened import demand in key agricultural markets.
Diammonium Hydrogen Phosphate (DAP) Recent Commodity Market Intelligence Report
I. Price Trends
- Base Price: According to Shengyishe, the benchmark price for diammonium hydrogen phosphate stood at RMB 8,333.33 per metric ton from July 27 to July 28, 2026—up 7.30% compared to the beginning-of-month price of RMB 7,766.67 per metric ton, and reaching an annual high.
- Regional Price Variations:
- Shandong Province: Shandong Fushengyong Trading Co., Ltd. quoted RMB 6,800/ton (98% purity, 25 kg/bag); Shandong Dingxin Biotechnology Co., Ltd. quoted RMB 9,000/ton; Shandong Hongyang Chemical Co., Ltd. quoted RMB 8,500/ton.
- Hubei Province: Hubei Qiangxing Chemical Co., Ltd. quoted RMB 8,200/ton for industrial-grade product (98% purity) and RMB 9,500/ton for food-grade product (99% purity); Wuhan Hengjiu Chemical Co., Ltd. quoted RMB 7,500/ton.
- Shanghai Municipality: Shanghai Shijian Industrial Co., Ltd. quoted RMB 9,400/ton for industrial-grade product (98% purity, produced by Sichuan Chuanyuan Chemical).
II. Supply-Demand Dynamics
- Supply Side:
- Industry concentration is increasing; large enterprises are enhancing production stability through technological upgrades and circular economy models, while some small- and medium-sized enterprises (SMEs) have exited the market due to environmental compliance pressures.
- Capacity expansion for battery-grade diammonium hydrogen phosphate is underway; enterprises including Hubei Xingfa and Yuntianhua are intensifying R&D investment to meet demand from the new-energy battery sector.
- Demand Side:
- Agricultural Demand: Import volumes from Southeast Asian countries—particularly Vietnam—remain robust. Vietnam’s import value of diammonium hydrogen phosphate reached USD 271 million in 2024; imports for January–May 2025 totaled USD 160 million, indicating sustained demand resilience.
- Industrial Demand: Demand from the new-energy battery sector has surged significantly; consumption of battery-grade diammonium hydrogen phosphate increased by 19.6% year-on-year in Q1 2025, driven by rapid expansion of lithium iron phosphate (LFP) battery production.
- Export Market: China’s total DAP exports from January to July 2025 amounted to 1.58 million metric tons—a 21.7% decline year-on-year—but export value rose by 1.8%, reflecting a growing share of high-value-added products.
III. Policy & Cost Factors
- Policy Support:
- The export tax rebate rate was raised from 10% to 13%, reducing enterprise cost burdens.
- Local governments have introduced fiscal subsidies—for example, Jiangsu Province offers RMB 150/ton for battery-grade products, while Yunnan Province provides preferential land-use and electricity pricing policies.
- Cost Pressures:
- Fluctuations in phosphate rock prices and rising environmental compliance costs have pushed up production costs; the average ex-factory price of diammonium hydrogen phosphate rose 4.3% year-on-year in 2024.
Analysis & Assessment
1. High-Price Environment:
- Short-term prices remain supported by strong demand from the new-energy sector and optimized export cost structures, suggesting continued high-level price volatility.
- Long-term price sustainability may be challenged by overseas capacity expansions (e.g., in Morocco and Saudi Arabia), potentially impacting China’s export markets.
2. Structural Supply-Demand Divergence:
- Agricultural-Grade Products: Stable import demand from Southeast Asia persists, yet domestic overcapacity risks are gradually emerging.
- Battery-Grade Products: A tight supply-demand balance remains in place; enterprises are consolidating market share through technological barriers.
3. Policy-Driven Industrial Transformation:
- Environmental regulations are accelerating industry consolidation, further elevating market concentration as SMEs exit.
- Policy dividends from new-energy initiatives are being realized; battery-grade products have become the primary growth engine.
Outlook
1. Price Trend:
- Second half of 2026: Benchmark price is projected to fluctuate within RMB 8,000–8,500/ton, with widening premiums for battery-grade products.
- 2027: Agricultural-grade prices may face downward pressure as overseas capacity comes online, whereas battery-grade prices are expected to remain firm, underpinned by rising production costs.
2. Demand Structure:
- Battery-sector demand share will rise from 15% in 2025 to 25% by 2027, becoming the core growth driver.
- Agricultural demand growth will decelerate to below 3% annually; export market growth will rely increasingly on high-value-added products.
3. Industry Landscape:
- CR5 (combined market share of top five producers) will exceed 65%, signaling transition into an oligopolistic competitive landscape.
- Technological advancement—including wet-process phosphoric acid purification—will become critical for competitiveness, accelerating the phase-out of outdated production capacity.
Diammonium phosphate (DAP) is a white, crystalline, odorless, water-soluble solid with low volatility and no defined melting point—it decomposes above approximately 155 °C, releasing ammonia. It is an inorganic ammonium salt and a major source of both nitrogen and phosphorus in fertilizer formulations. DAP serves primarily as a high-analysis phosphorus fertilizer in agriculture and is also used as a flame retardant in cellulose-based materials and as a nutrient source in yeast fermentation and microbial culture media. Its principal application areas are agrochemicals and industrial fire safety products, with minor use in food additives and water treatment.
(1) Diammonium phosphate is industrially used as feed additives, flame retardants and the ingredients of the fire extinguishing agent.(2) It can be used as analysis reagents and buffer(3) It is a widely applicable efficient fertilizer for vegetables, fruits, rice and wheat.(4) It can be used as water softeners; yeast foodstuffs, and so on.(5) In the food industry, it can be used as food leavening agent, dough regulator, yeast food, brewing fermentation additives as well as being used as a buffer.(6) It can be used as ruminant feed additives.(7) It can be used for printing plate, medicine, fire prevention, electronic tubes.(8) Fertilizer level is mainly used for high concentrations nitrogen and phosphorus compound fertilizer. The industrial grade can be used for impregnation of wood and fabric to increase its durability; it can be used as dry powder fire extinguishing agent, fluorescent phosphor; also used for the manufacturing of printing plate, tube, ceramic and china, wastewater biochemical treatment; military use it as the flame retardants of rocket engine motor insulation materials.
It appears as colorless transparent monoclinic crystal or white powder, being soluble in water, insoluble in alcohol, acetone and ammonia.
This chemical is included in Basic Chemicals - Phosphorus Chemicals. See more about what is Ammonium phosphate dibasic and Ammonium phosphate dibasic SDS information.
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