Phosphate Fertilizer Daily Review: Limited New Orders, Weak Cost Support

June 12, 2024, 9:21 AM

Feidoodoo

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Highlights at a glance

The Monoammonium Phosphate (MAP) and Diammonium Phosphate (DAP) markets in China remain weakly stable as of January 17, according to Feiduoduo data. The 55% powdered MAP index holds at 3,196.88, granular MAP at 3,250.00, and 58% powdered at 3,416.67, while DAP indexes show stability except for a drop in 57% content to 3,530.00. Market sentiment is subdued due to sluggish demand, cautious downstream procurement, and falling prices of key raw materials like sulfur and synthetic ammonia—though phosphate rock remains steady. Companies are prioritizing fulfillment of existing orders, with minimal new business and widespread negotiation-based transactions. A wait-and-see attitude dominates, compounded by weak compound fertilizer trends and declining grain prices limiting terminal demand. With limited transaction activity and growing price disorder, both MAP and DAP markets face short-term downward pressure, expected to remain stagnant or adjust weakly in the near term.

Monoammonium Phosphate (MAP) Price Index:
According to the data calculated by Feiduoduo on January 17th, the domestic 55% powdered MAP index is stable at 3196.88, the 55% granular index at 3250.00, and the 58% powdered index at 3416.67.

MAP Market Analysis and Forecast:
Today's domestic MAP market prices are weakly stable. From the corporate perspective, new orders are not as expected. To attract new orders, some companies are implementing trade policies for core downstream customers, leading to low market prices. Actual transactions continue to be negotiated. The market trend remains weak, with limited transactions and a flat atmosphere. In terms of demand, the market is lackluster with weak compound fertilizer trends and general demand. There is a strong sentiment of wait-and-see, and many areas are experiencing a downturn in operations, slowing down raw material procurement. As for raw materials, sulfur, and synthetic ammonia, prices continue to fall, while phosphate rock prices remain stable, showing a weak trend. Overall, the MAP market is operating weakly with limited new transactions, leading to market price chaos and a short-term downward trend.

Diammonium Phosphate (DAP) Price Index:
As calculated by Feiduoduo on January 17th, the domestic mainstream 64% granular DAP index is stable at 3860.00, the 60% brown index at 3450.00, and the 57% content index has fallen to 3530.00.

DAP Market Analysis and Forecast:
Today's domestic DAP market prices continue to operate weakly stable. Companies are focusing on fulfilling existing orders, with factory prices adjusting steadily. New orders are minimal, and actual transactions are primarily based on negotiations. The market continues to observe a wait-and-see attitude with a flat transaction atmosphere and average overall sales. Demand-wise, with low grain prices, terminal demand is cautious, providing limited support for DAP sales. On the raw material front, synthetic ammonia and sulfur prices are declining, while phosphate rock remains in tight supply, pushing prices up. In summary, the current DAP market is characterized by companies dealing with existing orders and minimal new orders, leading to a stalemate and expectations of a continued weak adjustment in market prices.

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