Phosphate Fertilizer Daily Review: Insufficient Market Demand Leads to Industry Downturn

Monoammonium Phosphate (MAP) Price Index:

According to Feidoodoo data, as of December 28, the domestic 55% powdered MAP index stands at 3379.38, stable; the 55% granular index is at 3400.00, stable; and the 58% powdered index is at 3633.33, also stable.

MAP Market Analysis and Forecast:

The domestic MAP market prices remain stable today. On the manufacturing side, most factories are executing previously pending orders, slightly lowering prices for new orders, and currently suspending external quotations without issuing new prices. In the market, trends continue to be weak with insufficient new orders and disorderly pricing under low demand, leading to a decline in industry operation. On the demand side, compound fertilizer enterprises show insufficient follow-up due to market conditions, maintaining a wait-and-see purchasing mindset. Regarding raw materials, the prices of synthetic ammonia and sulfur are fluctuating, while phosphate rock remains in tight supply, keeping raw material prices firm. Overall, the current MAP market is experiencing a noticeable decline in operation rates, with cautious purchasing and a wait-and-see attitude in demand follow-up, likely leading to a continued stable yet slightly declining market price in the short term.

Diammonium Phosphate (DAP) Price Index:

According to Feidoodoo data, as of December 28, the domestic mainstream 64% granular DAP index is 3871.67, stable; the 60% brown index is 3460.00, stable; and the 57% content index is at 3567.50, stable.

DAP Market Analysis and Forecast:

The domestic DAP market prices remain stable today. Factories are mostly executing pre-received orders and maintain stable quotations under sufficient pending orders, with a firm attitude. In the market, transactions are lackluster, with low purchasing enthusiasm among traders, and the atmosphere continues to be stagnant. In terms of supply, the DAP industry's operation is declining, leading to a tight market supply. Demand-wise, the winter storage downstream demand is weak, with a cautious purchasing mindset and a strong wait-and-see sentiment. Regarding raw materials, the prices of synthetic ammonia and sulfur are fluctuating, and phosphate rock prices remain firm, providing cost support. Overall, despite the continued decline in DAP production, market demand remains weak, anticipating a stable yet consolidating market price trend in the short term.