Phosphate Fertilizer Weekly: Enterprises Await Dispatch, Downstream Purchases Cautious, Prices Remain Stable

June 12, 2024, 9:21 AM

feidoodoo

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This week, the phosphate fertilizer market in China witnessed cautious downstream purchases and stable prices. The market price of monoammonium phosphate slightly declined but maintained a high operation level, with companies continuing to execute previous orders and the downstream market showing rational purchasing. Diammonium phosphate market price remained stable with little change, and companies continued dispatching pre-received orders with a cautious purchasing mentality observed downstream. The operating rates and production of both monoammonium and diammonium phosphate industries saw a slight increase, remaining higher than the same period last year. The port inventories for both fertilizers remained stable. The future forecast suggests a continuation of the current market trends, with price fluctuations for monoammonium phosphate and stable prices for diammonium phosphate.

Phosphate Fertilizer Market Price Analysis

Monoammonium Phosphate: According to Feidoodoo data, this week, the average price index of 55% powder is 3092.86, a decrease of 15.71 from last week, a decrease of 0.51%; the average price index of 55% granules is 2820, stable compared to last week; the average price index of 58% powder is 3300.00, a decrease of 16.67 from last week, a decrease of 0.5%.

This week, the market price of monoammonium phosphate slightly declined but still maintained a high level of operation. On the enterprise side, companies continue to execute the remaining pre-received orders from earlier, many have temporarily stopped quoting, with sufficient dispatch, some can continue until the end of this month, with few new orders and tight spot supply. Upstream and downstream, the upstream cost price remained stable this week, and raw material prices still have support; the downstream market continues to maintain a small amount of on-demand replenishment, purchasing tends to be rational, and the market overall continues to wait and see.

Diammonium Phosphate: According to Feidoodoo data, this week, the average price index of 64% granules is 3774, stable compared to last week; the average price index of 60% brown is 3276, an increase of 38 from last week, an increase of 1.17%; the average price index of 57% content diammonium is 3412.5, a decrease of 6 from last week, a decrease of 0.18%.

This week, the market price of diammonium phosphate remained stable, with little price change. On the enterprise side, some diammonium companies continue to dispatch pre-received orders, with sufficient dispatch until mid-next month, currently suspending quotes, and the factory quotes this week are basically flat compared to last week. On the demand side, although there is still a just-need gap downstream, the overall purchasing enthusiasm in the market is weak, and the purchasing mentality of downstream traders tends to be cautious. On the cost side, the prices of upstream raw materials are stable, affecting the price changes of diammonium synchronously. In terms of market transactions, affected by the continuous shortening of autumn fertilizer preparation time, the company's early goods quickly sank, and the company's current shipment enthusiasm has increased.

Future Forecast: Monoammonium Phosphate: Although the current monoammonium market demand is flat, companies still have support for dispatch. Overall, it is expected that the market price of monoammonium phosphate will mainly fluctuate within the range next week, and specific attention still needs to be paid to the price rise and fall on the cost side.

Diammonium Phosphate: Currently, diammonium companies have support for dispatch, limited fluctuations on the cost side, and weakened downstream purchasing enthusiasm. Overall, it is expected that the market price of diammonium phosphate will continue to remain stable next week.

Domestic Monoammonium Phosphate Industry Operation

This week, the operating rate of the domestic monoammonium phosphate industry is about 63%, an increase of 0.35% from last week, and a year-on-year increase of 18.73%; the operating rate of the monoammonium phosphate industry has increased slightly this week, still higher than the same period last year.

Domestic Diammonium Phosphate Industry Operation

This week, the operating rate of the domestic diammonium phosphate industry is about 67.3%, an increase of 1.85% from last week, and a year-on-year increase of 25.88%; the operating rate of the diammonium phosphate industry has increased slightly this week, still higher than the same period last year.

Domestic Monoammonium Phosphate Weekly Production Trend

This week, the domestic production of monoammonium phosphate is about 246,000 tons, an increase of 0.57% from last week, and a year-on-year increase of 40.86%; the weekly production of domestic monoammonium phosphate has increased slightly this week, still higher than the same period last year.

Domestic Diammonium Phosphate Weekly Production Trend

This week, the domestic production of diammonium phosphate is about 332,000 tons, an increase of 2.82% from last week, and a year-on-year increase of 61.08%; the weekly production of domestic diammonium phosphate has increased slightly this week, still much higher than the same period last year.

Domestic Monoammonium Phosphate Port Inventory Trend

This week, the main port inventory of the domestic monoammonium phosphate market is about 16,500 tons, stable compared to last week.

Domestic Diammonium Phosphate Port Inventory Trend

This week, the main port inventory of the domestic diammonium phosphate market is 149,000 tons, stable compared to last week.