Phosphate Fertilizer Daily Review: Limited New Orders Before the Holiday, Weak Market Performance

Monoammonium Phosphate (MAP) Price Index:

According to Feidoodooo data calculations: On January 29, the domestic 55% powder MAP index was 3137.50, stable; the 55% granule index was 3250.00, stable; and the 58% powder index was 3383.33, stable.

MAP Market Analysis and Forecast:

Today, the domestic MAP market prices continued weak adjustments. On the enterprise side, there were only a few new transactions, with deals continuing on a case-by-case basis. In the market, trading was limited, gradually moving towards a situation with neither price nor market, continuing weak adjustments. On the demand side, downstream demand follow-up was limited, with slow compound fertilizer shipments and continuously increasing inventories, leading to a further decline in industry capacity utilization rates. Most factories had a low willingness to purchase raw materials before the holiday, with only a few making necessary replenishments, showing overall low enthusiasm for procurement. On the raw material side, prices for sulfur and synthetic ammonia were adjusting downwards, while phosphate rock prices remained firm, with raw material prices experiencing stable fluctuations. Overall, the current MAP market has limited just-in-time demand follow-up, with overall low procurement volume before the holiday, expecting MAP market prices to continue weak adjustments in the short term.

Diammonium Phosphate (DAP) Price Index:

According to Feidoodoo data calculations: On January 29, the domestic mainstream 64% granule DAP index was 3851.67, stable; the 60% brown index was 3450.00, stable; and the 57% content index was 3522.50, stable.

DAP Market Analysis and Forecast:

Today, the domestic DAP market prices operate steadily. On the enterprise side, presales were the main focus, with most pending orders extending to early March, and a generally positive mindset among enterprises, with actual transactions mainly negotiated. In the market, the trading atmosphere was weak, with a strong wait-and-see sentiment among traders. On the demand side, just-in-time follow-up was limited, with general demand for fertilizer procurement at the end, not booming, and transactions essentially at a standstill. On the raw material side, sulfur and synthetic ammonia prices were adjusting downwards, with phosphate rock prices remaining stable, and costs continuing to adjust narrowly downwards. Overall, DAP enterprises have sufficient pending orders, mainly executing presales, with slow follow-up on new orders in the market, expecting DAP market prices to continue a weak trend in the short term.