Phosphate Fertilizer Weekly: Phosphate Fertilizer Prices Remain High, Downstream Purchases Cautiously

Phosphate Fertilizer Market Price Analysis:

Monoammonium Phosphate (MAP): According to Feidoodoo‘s data, this week, the average price index for 55% powder is 3112.86, up 68.86 from last week, an increase of 2.26%; the average price index for 55% granules is 2820, stable from last week; the average price index for 58% powder is 3320, up 70 from last week, an increase of 2.15%.

This week, there was little change in the MAP market, and prices continued to run at high levels. From the enterprise perspective, companies are still fulfilling their pre-received orders, pausing quotations, with ample pending shipments and few new deals, leading to tight spot supplies. In terms of upstream and downstream, the current high prices of upstream raw materials, such as phosphate rock, provide strong support, while downstream compound fertilizer companies are cautious about high-priced purchases, with many adopting a wait-and-see attitude.

Diammonium Phosphate (DAP): According to Feidoodoo's data, this week, the average price index for 64% granules is 3774, up 48.8 from last week, an increase of 1.31%; the average price index for 60% brown is 3486, up 156 from last week, an increase of 4.68%; the average price index for 57% DAP is 3418.5, up 145 from last week, an increase of 4.43%.

This week, the DAP market price trend continued to rise. From the enterprise perspective, companies are still executing their pre-received domestic and export orders, with ample pending shipments. In terms of supply, although domestic supplies continue, the short-term supply and demand still appear tight. In terms of demand, the current DAP market demand is strong, supported by both exports and domestic needs. However, due to the current high prices, the downstream maintains a small amount of on-demand purchases and is cautious about high-priced purchases.

Future Forecast:
MAP: The high upstream prices and ample pending shipments from MAP companies jointly support high quotations. The gap in downstream fertilizer use has narrowed, and traders purchase in small quantities as needed. Overall, it is expected that the MAP market price will mainly be on the watch next week.
DAP: The high prices of DAP's cost end and the rigid demand downstream, combined with the support of pending export orders, give enterprises a dominant advantage. Overall, it is expected that the DAP market price will continue to run at high levels next week, with prices more likely to rise than fall.

Domestic MAP Industry Operation:
This week, the domestic MAP industry's operating rate is about 64.8%, up 2.86% from last week, and up 30.45% year-on-year.

Domestic DAP Industry Operation:
This week, the domestic DAP industry's operating rate is about 65.4%, up 2.55% from last week, and up 27.43% year-on-year.

Domestic MAP Weekly Production Trend:
This week, the domestic MAP production is about 253,000 tons, up 4.59% from last week, and up 86.64% year-on-year.

Domestic DAP Weekly Production Trend:
This week, the domestic DAP production is about 323,000 tons, up 4.07% from last week, and up 70.67% year-on-year.

Domestic MAP Port Inventory Trend:
This week, the main port inventory of the domestic MAP market is about 16,500 tons, down 52.86% from last week, and down 89.3% year-on-year.

Domestic DAP Port Inventory Trend:
This week, the main port inventory of the domestic DAP market is 149,000 tons, down 2.3% from last week, and down 55.91% year-on-year.