Morocco: Phosphates exports soared in Q1 to $2.4 billion

Morocco’s exports of phosphates and derivatives doubled in the first quarter of 2022 reaching $2.4 billion against $1.3 billion reported same period last year.

According to latest data published by Moroccan Exchange Control Office, the positive financial results achieved by the state-owned phosphate OCP group are due to fertilizers’ higher prices which surged from $296 per ton in Q1 2021 to $737/T the past three months of the current year.

Since the end of 2021, fertilizer pricing has trended up, reflecting the tight supply/demand situation as well as further supply constraints related to the Russia-Ukraine conflict and Belarusian sanctions.

According to OCP outlook, phosphate market conditions are expected to remain strong in 2022, benefitting from consistent high demand in key grain-exporting markets, namely Brazil and North America, where crop prices are at record levels, and in India, thanks to the recent increase in subsidies.

Raw material prices are set to increase in 2022, as sulfur inventories remain limited and high natural gas prices and shortages are pushing up ammonia prices.

According to experts, the phosphate supply situation will remain very tight, in the first half of this year. To meet growing demand, OCP is planning to increase output volumes by approximately 10% in 2022 using existing capacity. The Company has activated its mini capacity expansion program expected to bring on 3 million tons of additional capacity in 2023.