Phosphate Fertilizer Production and Operating Rate in December 2023

June 12, 2024, 9:21 AM

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Highlights at a glance

In December 2023, China's monoammonium phosphate (MAP) production reached 990,300 tons, up 0.4% month-on-month and 5.16% year-on-year, with a slight rise in output despite environmental restrictions affecting some Sichuan producers. Cumulative MAP output for the year hit 10.6664 million tons, up 6.07% year-on-year. However, the operating rate fell to 53.28%, down both monthly and annually. In contrast, diammonium phosphate (DAP) production rose significantly to 1.134 million tons in December, a 6.28% monthly and 13.4% annual increase, driven by strong domestic demand and fulfillment of pre-booked orders. Full-year DAP production totaled 13.9386 million tons, up 12.64% year-on-year. Despite a drop in December’s operating rate to 45.71%, the annual average DAP operating rate was 56.17%, up 6.42% from last year, reflecting improved operational efficiency across the sector.

Monoammonium Phosphate (MAP) Production:
In December 2023, domestic MAP production was about 990,300 tons, an increase of 3,900 tons compared to the previous month, marking a 0.40% month-on-month increase. This represents a 5.16% year-on-year increase, with an increase of 48,600 tons compared to last year. From January to December 2023, the cumulative MAP production was 10.6664 million tons, an increase of 610,000 tons compared to the same period last year, up by 6.07%. This month's MAP production saw minor changes. Some units in Sichuan were affected by environmental regulations, leading to reduced or even ceased production by the end of the month. However, some factories gradually restarted their previously under-maintenance units, resulting in minor overall production changes this month.

MAP Operating Rate:
In December 2023, the domestic MAP industry's operating rate was about 53.28%, a 4.64% decrease month-on-month and a 5.95% decrease year-on-year. The average operating rate from January to December 2023 was about 54.33%, a 0.89% year-on-year increase.

Diammonium Phosphate (DAP) Production:
In December 2023, domestic DAP production was approximately 1.134 million tons, an increase of 67,000 tons from the previous month, up by 6.28% month-on-month, and a 13.40% increase compared to the same period last year, with an increase of 134,000 tons. From January to December 2023, the cumulative DAP production was 13.9386 million tons, an increase of 1.5639 million tons compared to the same period last year, up by 12.64%. This month, DAP enterprises shifted their focus to domestic supply. Domestic market orders were good, and many enterprises actively fulfilled their pre-received orders, increasing supply compared to the previous month.

DAP Operating Rate:
In December 2023, the domestic DAP industry's operating rate was about 45.71%, a 3.55% decrease month-on-month and a 4.20% decrease year-on-year. The average operating rate from January to December 2023 was about 56.17%, a 6.42% year-on-year increase.

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