Phosphate Fertilizer Weekly: Weakened Cost Support and Dismal Market Purchasing Atmosphere

Phosphate Fertilizer Market Analysis:

Phosphate Fertilizer Market Price Analysis:

Monoammonium Phosphate (MAP): According to Feidoodoo data analysis: This week, the average price index for 55% powder was 3211.13, down by 71.13, a 2.17% decrease from last week; the average price index for 55% granules was 3280.00, down by 120.00, a 3.53% decrease; and the average price index for 58% powder was 3446.67, down by 126.67, a 3.54% decrease.

This week, the MAP market prices continued a stable yet slightly declining trend, with poor market sales and generally steady quotations. On the enterprise side, new orders remained tepid, with no clear pricing, and actual transactions continued to be negotiable. Some factories have introduced policies for core downstream clients, while prices of some small factories and traders continued to fall. On the market side, the weak operation continued, with transactions subdued and the focus of transactions sliding further. In terms of supply, production and daily output of enterprises decreased compared to last week, with some affected by tight raw material supply. On the demand side, poor sales of downstream compound fertilizers led to flat demand, general market follow-up, continuous bearish news, increasing inventory pressure downstream, and reduced enthusiasm for raw material procurement.

Diammonium Phosphate (DAP): According to Feidoodoo data analysis: This week, the average price index for 64% granules was 3860.00, down by 2.67, a 0.07% decrease; the average price index for 60% brown was 3450.00, down by 8.00, a 0.23% decrease; and the average price index for 57% DAP was 3535.00, down by 11.50, a 0.32% decrease.

This week, DAP market prices continued the trend of stability with slight decreases. Factories continued to ship pre-stored winter orders, with sufficient pending shipments and stable prices. Traders showed chaotic pricing, increasing the negotiation space in the market, and actual transactions continued on a case-by-case basis. The market sentiment was flat, unlikely to improve shortly, with a continued weak operation and transactions remaining negotiable. Suppliers faced reduced production and daily output, with some affected by raw material supply issues. On the demand side, the demand remained weak with no apparent improvement, low grain prices led to general enthusiasm for purchasing, weak intention of traders to restock, and a strong wait-and-see attitude overall.

Domestic Phosphate Fertilizer Industry Operation:

Domestic MAP Industry Operation: According to Feidoodoo data: This week, the domestic MAP industry's operation rate was about 50.28%, a decrease of 2.15% from last week, and a 4.86% decrease year-on-year. The operation rate of the MAP industry decreased this week, continuing to be lower than the same period last year.

Domestic DAP Industry Operation: According to Feidoodoo data: This week, the domestic DAP industry's operation rate was about 54.83%, a decrease of 0.36% from last week, but an 8.77% increase year-on-year. The operation rate of the DAP industry decreased this week but is still higher than in the same period last year.

Domestic Phosphate Fertilizer Weekly Production Trends:

Domestic MAP Weekly Production Trend: According to Feidoodoo data: This week, domestic MAP production was about 196,400 tons, a 4.10% decrease from last week, and a 12.09% decrease year-on-year. The weekly production of domestic MAP continued to decline this week, remaining lower than in the same period last year.

Domestic DAP Weekly Production Trend: According to Feidoodoo data: This week, domestic DAP production was about 264,000 tons, a 0.64% decrease from last week, but a 14.88% increase year-on-year. The weekly production of domestic DAP declined this week but remained higher than the same period last year.

Domestic Phosphate Fertilizer Port Inventory Trends:

Domestic MAP Port Inventory Trend: According to Feidoodoo data: This week, the main port inventory of domestic MAP was about 32,000 tons, the same as last week, but a 76.79% decrease year-on-year.

Domestic DAP Port Inventory Trend: According to Feidoodoo data: This week, the main port inventory of domestic DAP was about 153,200 tons, the same as last week, but an 11.09% decrease year-on-year.

Phosphate Fertilizer Market Forecast:

MAP: Overall, MAP enterprises are dealing with pending shipments, with a weak market operation, limited new transactions, chaotic market prices, slowing downstream procurement, and an expectation for the MAP market prices to continue the trend of stability with slight decreases next week.

DAP: Overall, DAP factories are executing pending shipments with stable prices, general market sales, continued watchful sentiment among traders, weakened cost support, and an expectation for the DAP market prices to continue the trend of stability with slight decreases next week.