Phosphate Fertilizer Weekly Report: Supported by Pending Orders and Costs, Firm Prices

Phosphate Fertilizer Market Analysis

Phosphate Fertilizer Price Analysis

Monoammonium Phosphate (MAP):
According to Feidoodoo data, this week:

• The average price index for 55% powdered MAP was 3111.25, up by 92.25 from last week, a 3.06% increase.
• The average price index for 55% granular MAP remained stable at 3080.00.
• The average price index for 58% powdered MAP was 3366.67, up by 40.00 from last week, a 1.20% increase.

Market Dynamics:

• Enterprises: Pending orders continued to support prices, leading many companies to halt or limit new orders. Despite increased production loads, factory prices remained high and stable.
• Market: The market retained a strong bullish sentiment, with limited available goods supporting high prices. Low-priced goods were scarce, providing bullish support to the market.
• Supply: Industry production rates increased slightly, with some facilities planning to restart next month, indicating potential supply increases.
• Demand: There was ongoing demand with active replenishment by downstream buyers. Compound fertilizer enterprises maintained minimal just-in-time procurement, but high-priced transactions were limited.

Diammonium Phosphate (DAP):
According to Feidoodoo data, this week:

• The average price index for 64% granular DAP was 3770.67, down by 8.00 from last week, a 0.21% decrease.
• The average price index for 60% brown DAP remained stable at 3450.00.
• The average price index for 57% DAP was 3368.50, down by 24.00 from last week, a 0.71% decrease.

Market Dynamics:

• Enterprises: Companies focused on fulfilling export orders with limited domestic sales. Prices remained stable due to ongoing support from pending orders and export shipments.
• Market: The market had sufficient supply but ran on a pessimistic sentiment, with weak transaction atmospheres and narrow price adjustments downward.
• Supply: The operating rates for the DAP industry continued to decline slightly, with some facilities undergoing maintenance, reducing capacity utilization.
• Demand: Domestic demand remained weak, with corn fertilizer demand concluding. Minimal just-in-time procurement was observed, with cautious purchasing behavior.

Domestic Phosphate Fertilizer Industry Operational Rates

MAP:

• The operating rate for the MAP industry was approximately 53.03%, up by 1.94% from last week and 15.31% year-on-year. The rate continued to rise, remaining higher than the previous year.

DAP:

• The operating rate for the DAP industry was approximately 51.45%, down by 1.07% from last week but up by 14.39% year-on-year. The rate continued to decline but remained higher than the previous year.

Domestic Phosphate Fertilizer Production Trends

MAP Production:

• This week, MAP production was approximately 20.71 million tons, up by 3.81% from last week and 40.60% year-on-year. The production continued to rise, remaining higher than the previous year.

DAP Production:

• This week, DAP production was approximately 24.77 million tons, down by 2.36% from last week but up by 35.58% year-on-year. The production declined but remained higher than the previous year.

Domestic Phosphate Fertilizer Port Inventory Trends

MAP Port Inventory:

• This week, MAP port inventory was approximately 75,000 tons, remaining stable from last week but down by 34.78% year-on-year.

DAP Port Inventory:

• This week, DAP port inventory was approximately 76,000 tons, remaining stable from last week but down by 46.02% year-on-year.

Phosphate Fertilizer Market Outlook

MAP:

• The current tight supply, supported by just-in-time procurement and pending orders, keeps prices firm. With limited available volumes, prices are expected to continue rising moderately next week.

DAP:

• Despite weak demand and a cautious transaction atmosphere, prices remain supported by costs and pending orders. Prices are expected to remain mostly stable with minor adjustments next week, with limited fluctuations.