Daily Phosphate Fertilizer Review: Market Demand Continues to Weaken, Enterprises Roll Out Minimum Guarantee Policies

Monoammonium Phosphate (MAP) Price Index:

According to Feidoodoo data, as of April 15, the domestic MAP 55% powdered index stood at 2931.25, stable; the 55% granular index was at 3150.00, stable; and the 58% powdered index was at 3283.33, stable.

MAP Market Analysis and Forecast:

Today, domestic MAP market prices remained stable. On the enterprise side, production is primarily dictated by sales, with few new orders leading to a continued decline in industry operational rates. Enterprises are rolling out minimum guarantee policies sequentially, causing market prices to appear disordered, with actual transactions primarily based on negotiations. Market-wise, the performance remains weak, with scant new transactions and increasing pressure to move inventory, causing transaction focal points to continually drop. On the demand side, agricultural spring fertilization has ended, and the timing for summer fertilizer stockpiling is pushed back, limiting new order follow-ups; industrial downstream compound fertilizer movement is slow, with raw material purchases maintaining just essential needs, continuing the demand slump. In terms of raw materials, prices for sulfur and phosphate rock are experiencing slight fluctuations, while ammonia prices are steadily declining, indicating an adjustment in raw material prices. Overall, given the current low demand in the MAP market and the ongoing decline in operational rates, MAP market prices are expected to weakly decline in the short term.

Diammonium Phosphate (DAP) Price Index:

According to Feidoodoo data, as of April 15, the domestic DAP mainstream 64% granular index was at 3843.33, stable; the 60% brown index was at 3450.00, stable; and the 57% content index was at 3465.00, stable.

DAP Market Analysis and Forecast:

Today, domestic DAP market prices continue to remain stable. On the enterprise side, there is still a sufficient amount of pending shipments, with some export and domestic orders currently being shipped, leading to no inventory or sales pressure and limited price fluctuations; the main strategy is to maintain stability and adjustment. Market-wise, the trading atmosphere is stable with a consolidated operation, and the sentiment continues to adjust weakly. On the demand side, it is currently the end of the spring planting season, with agriculture requiring just essential replenishment orders, leading to a stable transaction atmosphere; industrial downstream factory demand remains weak, with only minimal essential purchases. In terms of raw materials, prices for sulfur and phosphate rock are fluctuating slightly, while ammonia prices fluctuate at high levels, showing slightly weak cost support. Overall, with the spring planting season nearing its end and limited market essential demand follow-up, DAP market prices are expected to weakly fluctuate and adjust in the short term.