Phosphate price expected to firm higher

The recently announced Australia-India trade deal could help shore up the price of phosphate. The average price of phosphate since 1960 is $54.96US/t. Last month it reached $178.8US/t. There’s currently only one operational phosphate mine operating in the country. That’s the Incitec Pivot Phosphate Hill operation south of Cloncurry near Dajarra. There are others coming online. Centrex Metals is running trials at the adjacent Ardmore mine site and has announced off-take deals. The nearby Korella Mine was bought last year by New Zealand based Chatham Rock Phosphate. The company said at the time it was interested in supplying the domestic market. Price shock The relatively stable phosphate price have been rocked by the restriction of supply as a result of the war in Ukraine said resource analyst with Fat Prophets David Lennox. “That history's all changed, primarily because we've seen key producers of phosphate unfortunately at war with each other, and that's the Ukraine and Russia, and that has caused the western nations to put an embargo or sanctions on Russian phosphate exports. “And what that's done is that's especially had an impact on the phosphate prices, which we've seen rise quite significantly over the course of the last couple of months.“One would have to suspect that once we see the Russian Ukraine conflict subside or cease, then we will see some more normality return to the market supply situation.” Related: The new book on phosphate Meanwhile, a new interim Free Trade Agreement (FTA) between Australia and India designed to reduce Australia's economic dependence on China has opened significant market opportunities for some industries. It was a key trade announcement which will build in significance particularly in agricultural supplies said Mr Lennox. “So, it does give the Australian producers in a number of commodities and agri commodities as well, to give them an alternative market source. “And of course, when you've signed one, it then becomes easier perhaps to look at signing with other countries. But India is the big jewel in the crown, given it's a huge population.“It is a country that's devoid of natural fertilizers and such, or chemicals to fertilize ground. “ And certainly they would be looking to source from other areas and other countries to ensure that they get a balance of imports, rather than, perhaps as we've seen with many countries, where they get stuck with one major supplier, and when that supplier turns against or away, it causes significant damage to the underlying industries.”

Phosphate price expected to firm higher

Industry Queensland

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