Phosphate Fertilizer Daily Review: Downstream Demand Stagnation, Market Operation Shows Weakness

Monoammonium Phosphate (MAP) Price Index:

According to Feidoodoo data estimates, on March 26, the domestic price index for 55% powdered MAP was 3067.50, indicating a decrease; the 55% granular index was stable at 3150.00; the 58% powdered index was stable at 3433.33.

MAP Market Analysis and Forecast:

Today, the domestic MAP market prices experienced a slight downward adjustment amidst stability. From the corporate perspective, companies continued to fulfill pre-received orders, with some facing sluggish sales, sales pressure, gradually increasing inventory pressures, and unstable sentiments, leading to a general fallback in actual transaction focal points. On the market front, the atmosphere of market transactions was notably tepid, with new orders scarce, further dragging down the transaction focal points and continuing the trend of weak market operation. In terms of demand, downstream demand was insufficient, remaining weak overall, with only just-in-time minimal purchases maintained. Regarding raw materials, prices for raw sulfur and phosphate rock were stable with minor adjustments, while the price of synthetic ammonia continued to rise, providing strong cost support. Overall, with tepid demand for MAP and lackluster enthusiasm from downstream purchasers, the MAP market prices are expected to operate within a stable yet weak range in the short term.

Diammonium Phosphate (DAP) Price Index:

According to Feidoodoo data estimates, on March 26, the domestic mainstream index for 64% granular DAP was stable at 3851.67; the 60% brown index was stable at 3460.00; the 57% content index was stable at 3512.50.

DAP Market Analysis and Forecast:

Today, domestic DAP market prices remain stable. From the corporate perspective, companies focused on shipping pending orders with factory prices held steady, though some transactions occurred at slightly lower undisclosed prices, reflecting a weary corporate sentiment. On the market front, the atmosphere of transactions continued to be lackluster, maintaining a steady yet weak adjustment trend, with a prevailing pessimistic sentiment among operators and a low inclination towards speculative price increases in the short term. In terms of demand, the end-users fertilizer buying was temporarily slow, with downstream purchasing enthusiasm lacking, primarily focused on just-in-time reordering, displaying a mindset of buying on rises but not on falls. Regarding raw materials, prices for raw sulfur and phosphate rock experienced minor fluctuations, while synthetic ammonia prices continued to ascend, strengthening raw material support. Overall, with a pessimistic sentiment prevailing among DAP operators and a weak price operation, DAP market prices are expected to continue a steady yet slightly fluctuating downward trend in the short term.