Introduction

The diammonium phosphate (DAP) market in Asia-Pacific remains a key focus for fertilizer buyers and distributors in 2026. Strong food demand, government-supported agriculture, and ongoing import reliance continue to shape procurement strategies across the region. While supply remains available, trade policies, logistics risks, and input cost movements require careful sourcing decisions.

 

Market Signals – Diammonium Phosphate (Asia-Pacific, 2026)

Demand trend: Rising
DAP demand continues to grow across Asia-Pacific, supported by global consumption expanding at a 5.2% CAGR through 2032. Countries such as India, Indonesia, Vietnam, and other Southeast Asian markets rely heavily on phosphate fertilizers to support food security and crop yield targets, particularly for rice, corn, and wheat.

Supply condition: Import-reliant
The region depends heavily on imported DAP due to limited local phosphate rock reserves and slow capacity expansion. China, Saudi Arabia, and Morocco remain the primary supply sources. Export controls from China and uneven production growth elsewhere reinforce import dependence for most Asia-Pacific buyers.

Pricing pressure: Moderate
DAP prices stabilized after sharp movements in 2025, but upward risks remain. Higher energy costs, phosphate rock availability, and export policy changes continue to influence pricing. Freight costs and currency movements add further variability to landed prices.

Buyer risk level: Medium
Supply risks stem from logistics delays, export restrictions, and geopolitical uncertainty. However, diversified sourcing and forward procurement strategies help limit severe disruptions for established buyers.

 

Current Market Snapshot

DAP import volumes across Asia-Pacific remained stable through late 2025, ensuring adequate supply for major planting seasons. Import-dependent markets such as India and Indonesia faced higher landed costs due to freight expenses and phosphate feedstock limitations, with prices averaging around 17% above the previous year on certain trade routes.

Supplier consolidation remains visible, while buyers closely monitor production developments in China and Iran that may release additional volumes into global markets in 2026. Purchasing activity remains steady, supported by ongoing fertilizer demand in rice- and corn-growing regions.

 

Key Demand Drivers

Food security remains the primary driver of DAP consumption across Asia-Pacific. Government-backed fertilizer subsidy programs in India, Indonesia, and Vietnam continue to support phosphate usage in staple crops. Phosphate fertilizer demand in the region is projected to grow at a 5.1% CAGR through 2035.

The adoption of precision farming and improved fertilizer formulations, such as coated and slow-release DAP, also supports sustained demand by improving nutrient efficiency and crop response. Expanding agricultural output in Southeast Asia further strengthens long-term consumption.

 

Supply and Availability Signals

Local DAP production capacity in Asia-Pacific remains limited. China continues to prioritize domestic fertilizer needs, with export controls tightening global availability during peak seasons. As a result, sourcing shifts increasingly toward Saudi Arabia and Morocco, where capacity expansions support moderate P₂O₅ output growth through 2026.

Logistics challenges persist, including port congestion in India and Indonesia and longer transit times due to Red Sea shipping disruptions. Lead times have extended by 10–15 days on several routes, increasing the importance of early booking and buffer inventories. Import dependence exceeds 70% in key markets, reinforcing exposure to upstream phosphate rock supply from North Africa.

 

Buyer Considerations

Procurement teams are focusing on multi-origin sourcing to reduce reliance on any single supplier or country. Compliance with national fertilizer regulations, such as India’s FCO standards, requires early product testing and supplier verification.

DAP pricing remains sensitive to freight rates, with Baltic Index movements translating into USD 20–30 per ton swings. Buyers benefit from working with logistics partners experienced in bulk fertilizer handling and from securing supply through structured contracts. Supplier financial stability and access to contingency stock are increasingly important amid global trade uncertainty.

 

Conclusion

The Asia-Pacific diammonium phosphate market in 2026 is defined by steady demand growth, strong import reliance, and manageable but persistent supply risks. Food security priorities, government support programs, and expanding agriculture continue to underpin consumption across the region.

While prices have stabilized, exposure to freight costs, export controls, and raw material availability remains. Buyers that adopt diversified sourcing strategies, plan procurement early, and partner with reliable distributors will be best positioned to manage cost and supply risks.