Phosphate Fertilizer Weekly: Market Transactions Lackluster, Transaction Focus Continues to Decline

Phosphate Fertilizer Market Analysis:

Price Analysis of Phosphate Fertilizers:

Monoammonium Phosphate (MAP): According to Fertilizer Plus data calculations: This week, the average price index for 55% powder form was 3067.75, a decrease of 38.00 from last week, down by 1.22%; the average price index for 55% granular form remained stable at 3150.00; the average price index for 58% powder form was 3433.33, stable from last week.

This week, domestic prices of monoammonium phosphate were mostly stable with slight declines. Market transactions were lackluster, and the transaction focus further declined. From the corporate perspective, companies mostly executed pre-received orders, some experienced sluggish shipments, sales pressure, gradually increasing inventory pressures, unstable sentiments, and generally lower quotations with actual transaction focus experiencing a fallback. On the market side, the market trend continued to weaken, transactions were stiff, with few transactions, and the transaction focus continued to shift downward. In terms of supply, production, and daily output continued to operate at high levels, with the industry supply remaining ample. Regarding demand, downstream demand was weak, purchases by compound fertilizer factories slowed, enthusiasm for raw material procurement weakened, and new orders followed up were limited, leading to a sliding transaction focus.

Diammonium Phosphate (DAP): According to Fertilizer Plus data calculations: This week, the average price index for 64% granular form was 3849.17, a decrease of 3.61 from last week, down by 0.09%; the average price index for 60% brown form remained stable at 3460.00; the average price index for 57% DAP was 3512.08, a decrease of 11.67 from last week, down by 0.33%.

This week, domestic diammonium phosphate prices underwent minor range adjustments, with a lackluster market atmosphere and transactions mostly remaining in negotiations. From the corporate perspective, companies continued executing pre-received orders, with domestic sales mostly pausing order acceptance, quotations remained stable, and some port-gathered goods were shipped, easing inventory pressures. On the market side, the domestic market continued to weaken, the trading atmosphere was subdued, sentiments were pessimistic, transaction prices were flexibly adjusted, mostly focusing on low-end goods and export goods were gathered at ports. In terms of supply, some units temporarily shut down this week, DAP operating rates continued to decline, but the overall industry operation remained at high levels. Regarding demand, the end-buy fertilizer demand slowed down, downstream purchasing enthusiasm was lacking, follow-up demand was general, support was weak, mostly focused on immediate replenishment, a mentality of buying on dips but not on rises was evident, with cautious purchasing attitudes.

Domestic Phosphate Fertilizer Industry Operation:

Operation of Domestic Monoammonium Phosphate Industry:
According to Fertilizer Plus statistics: This week, the domestic monoammonium phosphate industry operating rate was about 63.19%, an increase of 0.27% from last week, up by 15.87% year-on-year; the operating rate of the monoammonium phosphate industry increased this week, continuing to be higher than the same period last year.

Operation of Domestic Diammonium Phosphate Industry:
According to Fertilizer Plus statistics: This week, the domestic diammonium phosphate industry operating rate was about 57.20%, a decrease of 2.34% from last week, up by 4.53% year-on-year; the operating rate of the diammonium phosphate industry decreased this week, continuing to be higher than the same period last year.

Domestic Phosphate Fertilizer Weekly Production Trends:

Domestic Monoammonium Phosphate Weekly Production Trends:
According to Fertilizer Plus statistics: This week, domestic monoammonium phosphate production was about 246,800 tons, an increase of 0.45% from last week, up by 33.55% year-on-year; domestic monoammonium phosphate weekly production increased this week, still higher than the same period last year.

Domestic Diammonium Phosphate Weekly Production Trends:
According to Fertilizer Plus statistics: This week, domestic diammonium phosphate production was about 286,700 tons, stable from last week, up by 9.34% year-on-year; domestic diammonium phosphate weekly production remained stable this week, higher than the same period last year.

Domestic Phosphate Fertilizer Port Inventory Trends:

Domestic Monoammonium Phosphate Port Inventory Trends:
According to Fertilizer Plus statistics: This week, domestic mono ammonium phosphate main port inventory was about 21,300 tons, stable from last week, down by 75.23% year-on-year.

Domestic Diammonium Phosphate Port Inventory Trends:
According to Feidoodoo statistics: This week, domestic diammonium phosphate main port inventory was about 93,100 tons, stable from last week, down by 27.83% year-on-year.

Phosphate Fertilizer Market Forecast:

Monoammonium Phosphate: Overall, the current MAP market demand is sluggish. Although costs continue to adjust to high levels, market demand follow-up is weak, and with ample supply, traders are mostly observing, making a weak market hard to rise. It is expected that next week, the mono ammonium phosphate market prices will continue to be mostly stable with minor adjustments, weakly consolidating.

Diammonium Phosphate: Overall, the current DAP domestic market follow-up is insufficient, corporate resources are gathered at ports for export, traders' sentiments are unstable, and pessimistic, prices are weakly operated, export favorable support is weak, it is expected that next week, the diammonium phosphate market prices will continue to stabilize and adjust downwards.