Phosphate Fertilizer Daily Review: Continuous Drop in Upstream Prices, Weak Downstream Demand

Monoammonium Phosphate (MAP) Price Index:
According to data from Fei Duo Duo, on January 16th, the domestic index for 55% powdered MAP fell to 3196.88, the 55% granular index to 3250.00, and the 58% powdered index to 3416.67.

MAP Market Analysis and Forecast:
Today, the domestic MAP market continued its weak trend. From the enterprise perspective, new orders remained sluggish with no definite pricing, continuing negotiations for actual transactions. Some factories have introduced policies for core downstream clients, with prices from smaller manufacturers and traders continuously falling. The market trend remains weak with a flat transaction atmosphere. Demand-wise, market demand is weak, with slow sales of compound fertilizers increasing inventory pressure and reducing operation rates. In terms of raw materials, the prices of sulfur and synthetic ammonia continue to fall, while phosphate rock prices remain stable, indicating a continued downward trend in raw materials. Overall, the current MAP market is experiencing weakened demand and cost support, with a strong bearish sentiment among traders, leading to expectations of a continued slight decline in MAP prices.

Diammonium Phosphate (DAP) Price Index:
According to Fei Duo Duo data, on January 16th, the domestic index for mainstream 64% granular DAP was stable at 3860.00, the 60% brown index at 3450.00, and the 57% content index at 3542.50.

DAP Market Analysis and Forecast:
Today, the domestic DAP market prices continue to hold steady. Enterprises focused on fulfilling pending orders, with no change in factory prices and a firm market position. However, prices quoted by stockholders were chaotic, with actual transactions continuing on a case-by-case basis. The market trend remains weak with a lackluster trading atmosphere. Demand-wise, the sector continues to be sluggish with no significant improvement. Current low grain prices are affecting the enthusiasm for procurement, with downstream traders showing weak intentions to restock, and a strong overall wait-and-see sentiment. In terms of raw materials, the prices of synthetic ammonia and sulfur continue to adjust downwards, while phosphate rock remains in tight supply with increasing prices, leading to weakened cost support. Overall, the DAP market is witnessing average sales with continued wait-and-see sentiment from traders and weakened cost support, indicating a continued weak adjustment in DAP market prices.