Morocco’s Exchange Office released on Friday an annual report that unveiled a noticeable decrease in exports of phosphates and phosphate derivatives.
The figures showed that exports had dropped by 40.2% at the end of July compared to the same period last year, reaching a total of 40.8 billion dirhams ($ 4 billion), Morocco state media quoted the Office’s report as highlighting.
This decline in phosphate exports can be attributed to a significant reduction in sales across various categories. According to data from the United Nations Office for Project Services (UNOPS), there was a 36.5% decrease in natural fertilizers and chemicals, a 46% drop in phosphoric acid, and a substantial 53% decrease in crude phosphates.
But the report noted that it’s crucial to keep these numbers in perspective. The current export level, while lower than last year, still remains significantly higher than what was achieved between 2019 and 2021.
The Sharif Complex, a major player in the phosphate industry, reported a 37% decrease in transactions during the second quarter of this year, amounting to 19.3 billion dirhams ($1.8 billion). This decline was not limited to just one quarter, as the first half of the year also saw a 33% reduction in transactions, dropping to 37.6 billion dirhams from 56 billion dirhams during the same period in 2022.
OCP, the Sharif Complex’s parent company, attributed the decrease in transactions to a combination of reduced demand in this period and the global decline in raw material prices. Furthermore, it noted that the exceptional results achieved last year were influenced by a significant increase in fertilizer prices, and prices in the second quarter of this year have remained stable compared to the same period in 2021.
In contrast to this year’s challenges, Morocco’s exports of phosphates and their derivatives experienced a remarkable surge in 2022, reaching 115.48 billion dirhams ($11.3 billion). This marked a staggering 43.9% increase compared to the previous year, as reported by the annual report from the Exchange Office.
The boost in exports last year was primarily due to natural and chemical fertilizers, which saw an increase of approximately 27.75 billion dirhams ($2.7 billion) by the end of 2022, the report indicated. Remarkably, despite a decrease in the volume of phosphate exports by 11.8% last year, the export value still soared, stabilizing at 9.52 million tonnes compared to 10.7 million tonnes in 2021.
