Phosphate Fertilizer Daily Review: Market Demand Continues to Weaken, Industry Operating Rates Decline

Monocalcium Phosphate (MCP) Price Index:

According to Fei Duoduo's data: As of January 2nd, the domestic MCP 55% powder index is stable at 3379.38, the 55% granule index is stable at 3400.00, and the 58% powder index is stable at 3633.33.

MCP Market Analysis and Forecast:

Today, the domestic MCP market prices continue to remain stable. On the production side, manufacturers are seeing a gradual reduction in pre-received orders, with new orders still lacking. Some factories have discreetly lowered prices, leading to disorganized market pricing and ongoing negotiations for actual transactions. In the market, the trading atmosphere is lackluster with a disorganized focus on transactions. On the supply side, some MCP industry plants have reduced or even stopped production, leading to decreased daily production and supply. In terms of demand, downstream purchasing remains cautious, with continued low enthusiasm for acquiring stock. For raw materials, the price of synthetic ammonia is declining while phosphate rock prices remain stable, showing a firm cost trend. Overall, the current MCP market exhibits a poor trading atmosphere, with no significant follow-up in demand and a decline in industry operation rates. Therefore, it is expected that the MCP market prices will continue a weak downward trend in the short term.

Dicalcium Phosphate (DCP) Price Index:

According to Fei Duoduo's data: As of January 2nd, the domestic DCP mainstream 64% granule index is stable at 3871.67, the 60% brown index at 3460.00, and the 57% content index at 3567.50.

DCP Market Analysis and Forecast:

Today, the domestic DCP market prices continue to remain stable. On the enterprise side, many are focused on fulfilling pre-received orders, with sufficient pending shipments; traders are more willing to sell, with local prices slightly decreasing. In the market, the movement of goods is slow, and overall operation is lackluster. On the supply side, the DCP industry's operating rate has noticeably declined, creating a certain degree of positive impact due to tight supply. In terms of demand, the downstream winter storage market is in low spirits, with cautious purchasing attitudes and heavy wait-and-see sentiment. For raw materials, the price of synthetic ammonia is declining while phosphate rock prices remain firm, providing cost support. Overall, the current DCP market is experiencing some supply tightness and general movement of goods, with low downstream demand. It is expected that the DCP market prices will continue to be stable with minor adjustments in the short term.