Phosphate Fertilizer Daily Review: MAP Enterprises Halt Orders and Sales, DAP Market Continues to Decline

June 12, 2024, 9:21 AM

Feidoodoo

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The MAP market saw slight price increases today, with enterprises halting new orders due to tight spot supply and strong pending orders. The trading atmosphere remains positive, but just-in-time procurement by downstream compound fertilizer factories is weaker than before. Raw material prices are stable with minor adjustments. In the short term, MAP prices are expected to continue rising steadily. Conversely, the DAP market remained stable but sluggish, with limited new order follow-up and a generally bearish sentiment. The demand for corn fertilizer is nearing its end, and domestic demand remains moderate. In the short term, DAP prices are expected to continue their weak downward adjustment.

Monoammonium Phosphate (MAP) Price Index:

According to Feidoodoo data, on May 20:

The domestic MAP 55% powdered index increased to 2985.00.
The 55% granular index remained stable at 3080.00.
The 58% powdered index remained stable at 3300.00.

MAP Market Analysis and Forecast:

Today, the domestic MAP market prices showed slight upward adjustments. On the enterprise side, companies have large pending orders and have largely stopped accepting new orders or issuing new quotes. Due to tight spot supply and strong support from pending orders, many manufacturers are reluctant to sell, with actual transactions being negotiated on a case-by-case basis. On the market side, the trend continues to rise, with an active trading atmosphere and tight spot supply, leading to high current spot prices. On the demand side, downstream compound fertilizer factories maintain just-in-time procurement, with follow-up strength weaker than before. Regarding raw materials, the prices of sulfur and phosphate rock are stable with slight downward adjustments, while the synthetic ammonia market shows a weak downward trend, leading to minor cost adjustments. Overall, MAP enterprises are halting orders and are reluctant to sell, making spot supplies scarce and pushing transaction focus upward. In the short term, MAP market prices are expected to continue to hold steady and rise.

Diammonium Phosphate (DAP) Price Index:

According to Feidoodoo data, on May 20:

The domestic mainstream 64% granular DAP index remained stable at 3786.67.
The 60% brown DAP index remained stable at 3450.00.
The 57% DAP index remained stable at 3412.50.

DAP Market Analysis and Forecast:

Today, domestic DAP market prices remain stable. On the enterprise side, the follow-up on new orders is limited, with companies mainly focusing on shipments. After recent price drops, quotes have stabilized without new prices being issued, and actual transactions are mostly negotiated. On the market side, recent arrivals have decreased compared to earlier periods, with a generally bearish sentiment among traders, leading to weak consolidation in the market. On the demand side, the demand for corn fertilizer is nearing its end, with domestic demand being moderate and marked by cautious observation. Regarding raw materials, the prices of sulfur and phosphate rock are stable with slight adjustments, while the synthetic ammonia market shows minor declines, leading to cost fluctuations. Overall, the DAP market remains sluggish with insufficient demand follow-up. In the short term, DAP market prices are expected to continue their weak downward adjustment.