August 24 Phosphate Fertilizer Daily Review: Sulfur Retreats from High Levels as Phosphate Fertilizers Consolidate Weakly

 

According to Feidoodoo data, on August 24, the domestic 55% powder MAP price index was 4,355.00, down 0.85% from the previous working day; the 55% granular MAP price index was 4,450.00, unchanged from the previous working day; and the 58% powder MAP price index was 4,693.33, unchanged from the previous working day.

 

 

The domestic MAP market traded weakly today. On the producer side, most plants are still fulfilling earlier orders. Prices for 55% powder MAP edged lower, while some traders offered at slightly lower levels. Firm transactions remain subject to negotiation. On the market side, the wait-and-see atmosphere has not improved materially. On the demand side, some downstream compound fertilizer producers are experiencing slow sales. They are mostly using raw materials stocked earlier and maintaining only limited rigid-demand procurement. New-order transactions are limited and demand remains weak. On the raw material side, domestic sulfur prices declined from high levels today; port sulfur inventories remained relatively low overall; sulfuric acid prices continued weak consolidation; and the phosphate rock market remained under pressure. However, phosphate rock prices are still trading within a relatively high historical range, and cost support remains substantial. Overall, the MAP market is expected to remain weak in the short term. Attention should focus on raw material price trends, the pace of autumn fertilizer procurement by downstream compound fertilizer producers, and the pass-through impact of geopolitical developments on costs.

 

 

According to Feidoodoo data, on August 24, the domestic mainstream 64% granular DAP price index was 4,571.67, unchanged from the previous working day; the 60% brown DAP price index was 4,700.00, unchanged from the previous working day; and the 57% DAP price index was 4,410.00, unchanged from the previous working day.

 

 

The domestic DAP market continued to consolidate today. On the producer side, some producers are mainly shipping earlier contracted orders awaiting delivery. Their willingness to support prices remains strong, and firm transactions are subject to negotiation. On the market side, trading remains in a stalemate, with participants taking a wait-and-see approach. On the demand side, the autumn fertilizer season has started slowly and downstream demand support is weak. Most compound fertilizer plants are maintaining low operating rates, purchasing interest is generally limited, and market caution remains strong. Downstream inquiries are sporadic, while follow-up on firm orders remains limited. On the raw material side, domestic sulfur prices declined from high levels today; port sulfur inventories remained relatively low overall; sulfuric acid prices continued weak consolidation; and the phosphate rock market remained under pressure. However, phosphate rock prices are still trading within a relatively high historical range. Cost-side raw material prices remain high, cost pressure has not eased materially, and costs continue to provide strong market support. Overall, the DAP market is expected to maintain steady, narrow-range consolidation in the short term. Attention should focus on changes in raw material prices, downstream demand follow-up, and subsequent export policy adjustments.

 

 

According to Feidoodoo data, on August 24, granular sulfur at Zhenjiang Port was priced at 8,300 yuan/tonne, down 400 yuan/tonne from the previous working day; granular sulfur at Dafeng Port was priced at 8,280 yuan/tonne, down 400 yuan/tonne; powdered and lump sulfur at Zhenjiang Port was priced at 8,250 yuan/tonne, down 400 yuan/tonne; powdered and lump sulfur at Dafeng Port was priced at 8,230 yuan/tonne, down 400 yuan/tonne; solid sulfur in East China was priced at 9,100 yuan/tonne, unchanged; and liquid sulfur in East China was priced at 8,775 yuan/tonne, up 20 yuan/tonne.

 

 

Domestic sulfur prices retreated from high levels today, putting market sentiment under pressure. US-Iran geopolitical tensions have continued to escalate, and the confrontation between the two sides has increased uncertainty around navigation through the Strait of Hormuz. In theory, this could disrupt global seaborne sulfur supply. However, based on current domestic spot-market feedback, demand lacks new drivers and cannot provide an effective floor for domestic sulfur prices. With Zhenjiang Port as the benchmark, mainstream granular sulfur prices were in line with morning expectations.

 

Overall bullish factors are absent, and spot trading at ports remains subdued. Market participants are broadly maintaining a negative wait-and-see stance. Intended sellers continue to face inventory and shipment pressure, and this pressure on sentiment has not eased. To accelerate turnover and stimulate sales, some traders have proactively cut quotations sharply. However, downstream buyers have not followed up sufficiently. Indicative bids from sporadic buyers are even lower, leaving a considerable bid-offer gap. No substantive negotiated transactions have been heard in the market, while the spot price benchmark continues to move noticeably lower.

 

On the demand side, operating-rate releases in downstream chemical and fertilizer industries remain limited, and actual purchasing demand is weak overall. On the supply side, port cargoes remain available, while holders show a relatively strong willingness to sell. Supply-demand fundamentals are loose. Buyers hold strong bearish expectations for the outlook and are mainly restocking only for rigid demand, with limited willingness to build inventories proactively. Although the Middle East geopolitical situation remains complex and uncertain, it will be difficult for it to transmit quickly to the domestic spot market in the short term. Under weak fundamentals, sulfur spot prices still face the risk of further decline. Attention should remain on developments in US-Iran relations, the arrival pace of overseas cargoes, and actual downstream purchasing follow-up.

 

 

August 24: In Anhui, 55% powder MAP delivered prices were quoted at around 4,400-4,430 yuan/tonne, lower.

 

August 24: In Northeast China, 55% powder MAP delivered prices were quoted at around 4,250-4,250 yuan/tonne, unchanged.

 

August 24: In Henan, 55% powder MAP delivered prices were quoted at around 4,380-4,420 yuan/tonne, lower.

 

August 24: In Hubei, mainstream ex-factory prices for 55% powder MAP were quoted at around 4,300-4,350 yuan/tonne, lower.

 

August 24: In Jiangsu, 55% powder MAP delivered prices were quoted at around 4,380-4,450 yuan/tonne, lower.

 

August 24: In Shandong, 55% powder MAP delivered prices were quoted at around 4,350-4,450 yuan/tonne, lower.

 

August 24: In Sichuan, 55% powder MAP delivered prices were quoted at around 4,300-4,350 yuan/tonne, unchanged.

 

August 24: In Yunnan, 55% powder MAP ex-factory prices were quoted at around 4,250-4,300 yuan/tonne, unchanged.

 

August 24: In Shaanxi, 60% DAP self-pickup ex-factory prices were quoted at 4,700-4,750 yuan/tonne, unchanged.

 

August 24: In Northeast China, 64% DAP self-pickup ex-factory prices were quoted at 4,550-4,600 yuan/tonne, unchanged.

 

August 24: In Hebei, 57% DAP self-pickup prices were quoted at 4,380-4,450 yuan/tonne, unchanged.

 

August 24: In Hubei, 64% DAP self-pickup ex-factory prices were quoted at 4,800-4,850 yuan/tonne, unchanged.

 

August 24: In Shandong, 64% DAP self-pickup warehouse prices were quoted at 4,900-5,000 yuan/tonne, unchanged; 57% DAP self-pickup terminal prices were quoted at 4,400-4,450 yuan/tonne, unchanged.