Phosphate Fertilizer Weekly: Continuous Improvement in MAP Trading Atmosphere, DAP Market Remains Weak and Stable

Phosphate Fertilizer Market Analysis

Phosphate Fertilizer Market Price Analysis:

Monoammonium Phosphate (MAP): According to Fertoduo data estimates:

• This week, the average price index for 55% powdered MAP is 2950.50, up by 52.25 from last week, a 1.80% week-on-week increase.
• The average price index for 55% granular MAP is 3074.00, up by 24.00 from last week, a 0.79% week-on-week increase.
• The average price index for 58% powdered MAP is 3266.67, up by 16.67 from last week, a 0.51% week-on-week increase.

This week, domestic MAP prices continued to rise with an active trading atmosphere and optimistic sentiments. The market saw a strong push for price increases, with sustained upward trends. On the enterprise side, order receipts were good, with new orders continually followed up. Pending orders extend mostly to the end of this month, with some extending to the end of the next month, leading to substantial pending volumes. Prices remained firm with many halting new order intake. On the market side, sales were good, with transaction focus continuing to move upward, driven by demand. The supply side saw increased operational loads in the industry, with previously halted facilities gradually resuming production, leading to increased supply. On the demand side, downstream compound fertilizer capacity utilization rates continued to increase, with ongoing procurement follow-ups. Essential demand remains, but as prices continue to rise, downstream purchasing attitudes have become more cautious, leading to careful operations.

Diammonium Phosphate (DAP): According to Fertoduo data estimates:

• This week, the average price index for 64% granular DAP is 3789.33, down by 39.67 from last week, a 1.04% week-on-week decrease.
• The average price index for 60% brown DAP is 3450.00, remaining stable compared to last week.
• The average price index for 57% DAP is 3419.50, down by 45.50 from last week, a 1.31% week-on-week decrease.

This week, domestic DAP prices showed weak declines with sufficient market supplies, leading to weak market performance and unstable sentiments among traders. Enterprise pending orders decreased, with poor follow-up on new orders, leading to increased inventory pressure and a downward trend in mainstream prices. On the market side, international prices for DAP were lower than domestic prices, causing a downward shift in transaction focus and a general downward trend in market sentiment. The overall trading atmosphere was average, with weak consolidation being the main trend. On the supply side, DAP industry operating rates slightly increased, with market supply remaining similar to last week, showing little change. On the demand side, the demand for corn fertilizer is nearing its end, with essential demand following up. Procurement attitudes remain cautious, with flat demand and strong market observation sentiments. Domestic sales demand remains flat, with minimal follow-up in the mainstream corn fertilizer market, indicating cautious follow-up on demand.

Domestic Phosphate Fertilizer Industry Operational Situation:

Domestic MAP Industry Operational Situation:

According to Feidoodoo data statistics:

• This week, the domestic MAP industry operating rate was about 47.88%, up by 1.18% from last week and up by 2.53% year-on-year. The MAP industry operating rate increased this week, remaining higher than the same period last year.

Domestic DAP Industry Operational Situation:

According to Feidoodoo data statistics:

• This week, the domestic DAP industry operating rate was about 53.37%, up by 0.43% from last week and up by 0.81% year-on-year. The DAP industry operating rate increased this week, continuing to be higher than the same period last year.

Domestic Phosphate Fertilizer Weekly Production Trends:

Domestic MAP Weekly Production Trends:

According to Feidoodoo data statistics:

• This week, domestic MAP production was about 187,000 tons, up by 2.52% from last week and up by 42.86% year-on-year. Domestic MAP weekly production increased this week, remaining higher than the same period last year.

Domestic DAP Weekly Production Trends:

According to Feidoodoo data statistics:

• This week, domestic DAP production was about 257,100 tons, up by 0.86% from last week and up by 27.66% year-on-year. Domestic DAP weekly production increased this week, continuing to be higher than the same period last year.

Domestic Phosphate Fertilizer Port Inventory Trends:

Domestic MAP Port Inventory Trends:

According to Feidoodoo data statistics:

• This week, domestic MAP market main port inventory was about 55,000 tons, unchanged from last week but down by 52.99% year-on-year.

Domestic DAP Port Inventory Trends:

According to Feidoodoo data statistics:

• This week, the domestic DAP market main port inventory was about 82,000 tons, unchanged from last week but down by 64.84% year-on-year.

Phosphate Fertilizer Market Outlook:

MAP:

Overall, current MAP enterprises have strong support from pending orders, with a favorable market atmosphere. Coupled with high downstream operational rates and strong follow-up procurement willingness, the market atmosphere remains positive, with prices expected to continue rising steadily next week.

DAP:

Overall, the current DAP market faces weak domestic demand and lower international prices, with slow follow-up on new orders and increased sales pressure for enterprises. The market trading situation is not favorable, with a low atmosphere and weak new order receipts, leading to continuous downward adjustments in prices. DAP market prices are expected to continue their weak downward trend next week.