OCP Group, Casablanca, said late on Dec. 17 it is temporarily curtailing its phosphate production plans by 500,000 mt, effective mid-December through the end of February 2020.
OCP said this decision to reduce its planned production is driven by recent weather conditions and forecasted consignments at Moroccan ports that are expected to continue until the end of February 2020.
Market sources noted that the port of Jorf Lasfar is facing problems with swells this month and in January, which will restrict vessel loading. They see the Moroccan group’s move to curtail production as one of inventory control to avoid stock build at the port, rather than a move to control supply (see Markets). OCP, like the Russian producers, hitherto has been turning out both DAP and MAP in big quantities to secure larger market share (GM Dec. 13, p. 3).
A spokesperson for OCP clarified that the production curtailment will be for all phosphate fertilizers, and reflecting the nature of the group’s product portfolio, will comprise more DAP/MAP than NPK or TSP.
Given current demand levels, the Moroccan phosphate group said it does not believe that this temporary reduced production will affect supply to its customer base. It added that it continues to expect demand to increase in 2020, and it will be ready to adjust its phosphate production levels to meet its customers’ needs.