Phosphate Fertilizer Weekly: Cost benefits upstream, continued demand downstream, phosphate fertilizer prices continue to rise

Analysis of Phosphate Fertilizer Market Prices:

Diammonium Phosphate: According to data from Feidoodoo this week, the average price index for 55% powder is 3044, an increase of 75.14 from last week, a sequential increase of 2.53%. The average price index for 55% granules is 2820, stable from last week; the average price index for 58% powder is 3250, up 33.33 from last week, a sequential increase of 1.04%.

This week, the price of diammonium phosphate in the market continues to operate at a high level. On the manufacturer's side, most companies are still accepting limited orders, a few at higher prices. The number of new orders is small, but there were many previous pre-orders. Most of these orders are scheduled to be dispatched until mid to late September. On the upstream and downstream sides, current upstream cost prices remain high, with raw phosphate ore and synthetic ammonia prices continuing to rise. Downstream compound fertilizer companies still have purchasing needs and maintain minimal rigid demand.

Monoammonium Phosphate: According to data from Feidoodoo, this week, the 64% granules' average price index is 3725.2, up 19.6 from last week, a sequential increase of 0.53%. The average price index for 60% brown is 3330, up 106 from last week, an increase of 3.29%; the 57% content diammonium price index averages 3273.5, up 75 from last week, a sequential increase of 2.34%.

This week, the price of monoammonium phosphate in the market continues to rise. On the corporate side, most companies are executing domestic and export pre-orders. Many have temporarily stopped or limited payment collection, but there are plenty of orders waiting to be dispatched, and there is no shortage of export orders.

Forecast:
Diammonium Phosphate: With strong support from upstream cost factors, as costs rise, the prices of diammonium phosphate also rise. Given the number of orders companies have waiting to be dispatched and the continued rigid demand downstream, the market for diammonium phosphate is expected to continue to operate at a high level next week.

Monoammonium Phosphate: The high costs and downstream demand, along with support from export orders, are all positive for businesses. Overall, the market price of monoammonium phosphate is expected to remain high next week, with prices more likely to rise than fall.

Domestic Phosphate Fertilizer Industry Operation Status:

The operating rate of the domestic diammonium phosphate industry this week is about 61.9%, down 2.37% sequentially, and up 29.72% year-on-year. The operating rate of the domestic monoammonium phosphate industry this week is about 62.9%, down 4.47% sequentially, and up 24.19% year-on-year.

Domestic Phosphate Fertilizer Weekly Production Trend:

The production of diammonium phosphate this week is about 242,000 tons, down 3.67% sequentially, but up a significant 90.24% year-on-year. The production of monoammonium phosphate this week is about 310,000 tons, down 6.63% sequentially, but up 63.4% year-on-year.

Domestic Phosphate Fertilizer Port Inventory Trend:

The inventory at major ports for the diammonium phosphate market this week is about 35,000 tons, down 7.16% sequentially, and down a significant 76.54% year-on-year. The inventory at major ports for the monoammonium phosphate market is about 152,000 tons, down 9.63% sequentially, and down 56.25% year-on-year.