Phosphate Fertilizer Daily Review: Upstream Cost Support Strengthens, Phosphate Fertilizer Market Remains Firm

Monoammonium Phosphate (MAP) Price Index:

According to Feidoodoo data estimation: On April 9, the domestic price index for 55% powder MAP was 2931.25, stable; the 55% granular index was 3150.00, stable; and the 58% powder index was 3300.00, stable.

MAP Market Analysis and Forecast:

Today, domestic MAP market prices remained stable. From the enterprise perspective, as shipments are processed, orders gradually decrease, with insufficient new orders leading to pressure on shipments and an increase in production cuts for maintenance. Market-wise, the operation maintained a weak state with scant transactions, and the market's focus continued to decline, making it difficult to improve the weak situation. In terms of demand, follow-up was weak, with downstream maintaining minimal on-demand purchases, and short-term demand prospects remain bleak. On the raw material front, the prices of sulfur and phosphate rock continued to hold steady, with the price of synthetic ammonia pushing higher within a stable range, keeping raw material costs at high levels. Overall, the MAP market is currently lackluster with insufficient new orders and limited follow-ups on actual orders, putting sales pressure on enterprises. It is expected that the MAP market prices will continue to experience weak fluctuations and adjustments in the short term.

Diammonium Phosphate (DAP) Price Index:

According to Feidoodoo data estimation: On April 9, the domestic mainstream 64% granular DAP index was 3843.33, stable; the 60% brown index was 3460.00, stable; and the 57% content index was 3482.50, stable.

DAP Market Analysis and Forecast:

Today, domestic DAP market prices continue to hold steady. Enterprises kept their ex-factory prices stable, continuing to fulfill domestic pending orders and pre-received exports, with recent shipments being relatively smooth. The enterprise sentiment is mostly firm, with transactions maintained on a case-by-case basis. Market-wise, the atmosphere for shipments continued to improve, with downstream just-in-time reordering following up, and an increase in enterprise orders received, but the overall demand remained limited, with the market expected to shake out in the short term. In terms of demand, the spring plowing needs are entering the final stages, with some regions following up well on spring plowing and fertilization, but the terminal demand is limited, mostly maintaining just-in-time stock replenishments, and the current demand performance is average. On the raw material front, the prices of sulfur and phosphate rock remained stable, with the price of synthetic ammonia continuing to provide high-level support, keeping raw material costs strong. Overall, the current DAP market demand follows up with just-in-time reordering, with limited demand volume and a short support period, but the cost side continues to provide strong support, expecting DAP market prices to continue to shake out and operate in adjustments in the short term.