Phosphate Fertilizer Weekly: Continuous Improvement in MAP Trading Atmosphere, DAP Market Remains Weak and Stable

June 12, 2024, 9:21 AM

Feidoodoo

1011

The phosphate fertilizer market showed varied performance this week, with MAP prices continuously rising amid active trading and optimistic sentiments, supported by good order receipts and increased supply. In contrast, DAP prices experienced weak declines due to sufficient market supply and poor new order follow-up, leading to increased inventory pressure and a downward trend in prices. Both MAP and DAP industries saw slight increases in operating rates and production, continuing to outperform the same period last year. Market outlook indicates a steady rise in MAP prices due to strong demand and operational support, while DAP prices are expected to continue their weak downward trend due to low domestic demand and international price pressures.

Phosphate Fertilizer Market Analysis

Phosphate Fertilizer Market Price Analysis:

Monoammonium Phosphate (MAP): According to Fertoduo data estimates:

This week, the average price index for 55% powdered MAP is 2950.50, up by 52.25 from last week, a 1.80% week-on-week increase.
The average price index for 55% granular MAP is 3074.00, up by 24.00 from last week, a 0.79% week-on-week increase.
The average price index for 58% powdered MAP is 3266.67, up by 16.67 from last week, a 0.51% week-on-week increase.

This week, domestic MAP prices continued to rise with an active trading atmosphere and optimistic sentiments. The market saw a strong push for price increases, with sustained upward trends. On the enterprise side, order receipts were good, with new orders continually followed up. Pending orders extend mostly to the end of this month, with some extending to the end of the next month, leading to substantial pending volumes. Prices remained firm with many halting new order intake. On the market side, sales were good, with transaction focus continuing to move upward, driven by demand. The supply side saw increased operational loads in the industry, with previously halted facilities gradually resuming production, leading to increased supply. On the demand side, downstream compound fertilizer capacity utilization rates continued to increase, with ongoing procurement follow-ups. Essential demand remains, but as prices continue to rise, downstream purchasing attitudes have become more cautious, leading to careful operations.

Diammonium Phosphate (DAP): According to Fertoduo data estimates:

This week, the average price index for 64% granular DAP is 3789.33, down by 39.67 from last week, a 1.04% week-on-week decrease.
The average price index for 60% brown DAP is 3450.00, remaining stable compared to last week.
The average price index for 57% DAP is 3419.50, down by 45.50 from last week, a 1.31% week-on-week decrease.

This week, domestic DAP prices showed weak declines with sufficient market supplies, leading to weak market performance and unstable sentiments among traders. Enterprise pending orders decreased, with poor follow-up on new orders, leading to increased inventory pressure and a downward trend in mainstream prices. On the market side, international prices for DAP were lower than domestic prices, causing a downward shift in transaction focus and a general downward trend in market sentiment. The overall trading atmosphere was average, with weak consolidation being the main trend. On the supply side, DAP industry operating rates slightly increased, with market supply remaining similar to last week, showing little change. On the demand side, the demand for corn fertilizer is nearing its end, with essential demand following up. Procurement attitudes remain cautious, with flat demand and strong market observation sentiments. Domestic sales demand remains flat, with minimal follow-up in the mainstream corn fertilizer market, indicating cautious follow-up on demand.