Platts to Overhaul Morocco Phosphate Rock Price Assessment
Rabat, The Gulf Observer: Platts, a division of S&P Global Commodity Insights, has announced a significant overhaul to its methodology for assessing Morocco’s FOB phosphate rock prices. The changes, which will come into effect on July 3, aim to better reflect the unique structure of Morocco’s phosphate market, dominated by state-owned OCP Group.
Under the Moroccan Mining Code (Law No. 33-13), OCP retains exclusive legal rights to extract, process, and market phosphate rock in the country. The group primarily operates through quarterly supply contracts with its global clientele, bypassing conventional spot trading mechanisms.
In line with this reality, Platts’ revised methodology will shift the pricing basis exclusively to contract prices between OCP and verified buyers. Spot transactions will no longer be factored into the assessment, marking a departure from previous practices. Accordingly, the assessment will be renamed from “Phosphate Rock FOB Morocco, 68–72 BPL” to “Phosphate Rock FOB Morocco CP, 68–72 BPL”, with “CP” denoting “Contract Price.”
Platts clarified that it will collect and verify contract data directly from OCP and its customers without applying any editorial adjustments or interpretative pricing models. Despite the methodological change, the assessment will continue to be published using the same FPRMA04 database code and across existing channels. Market participants are invited to submit feedback on the proposal until June 3.
Morocco: A Phosphate Powerhouse
Home to approximately 70% of the world’s phosphate reserves, Morocco plays a pivotal role in the global phosphate industry. Its estimated reserves exceed 50 billion tonnes, significantly outpacing other countries, including China, which holds just over 3 billion tonnes. Major phosphate-rich regions include Khouribga, Oued Eddahab-Lagouira, and Youssoufia.
While China led global production in 2023 with 90 million tonnes, Morocco ranked second with 35 million tonnes and remains the world’s largest exporter of raw phosphate. It also ranked as the fourth-largest exporter of fertilizers, contributing 54% of Africa’s fertilizer supply in 2021.
Morocco’s strategic position, straddling the Atlantic Ocean and the Mediterranean Sea, combined with its modern port infrastructure—such as the Tanger Med Port, Africa’s largest—facilitates efficient export flows. Beyond phosphate, Morocco holds substantial reserves of lead, zinc, silver, copper, and gold.
Phosphate’s Global Significance
Phosphate is essential to global agriculture and technology. As a natural source of phosphorus, it is a key component in fertilizers that underpin global food production. It is also refined into phosphoric acid, which is used across industries ranging from food and cosmetics to electronics.
Crucially, phosphate plays a growing role in the green energy transition, particularly in the production of iron and lithium phosphate, critical for electric vehicle (EV) batteries and energy storage systems.
Phosphate mining accounts for approximately 90% of Morocco’s mining sector, which in turn contributes 10% to the national GDP. Despite a 34% drop in phosphate export revenues in 2023—down to MAD 76 billion ($7.6 billion) due to global fertilizer price declines—Morocco continues to invest heavily in downstream industries.
Green Tech Ambitions and Reforms
The Moroccan government has been modernizing its mining sector through reforms such as the Mining Law 33-13 (2015) and the Morocco Mining Plan 2021–2030, focusing on institutional efficiency and environmental sustainability.
Notably, Morocco is investing in the Jorf Industrial Accelerator Zone, a hub for EV battery production, with an initial investment of $2.3 billion. This zone is poised to generate thousands of jobs and strengthen Morocco’s position in green technology supply chains.
The proposed changes by Platts reflect not only a shift in price reporting but also Morocco’s growing strategic role in the global phosphate and clean energy landscape.
