The monoammonium phosphate market is still on an upward trend.

Introduction: Recently, the price of monoammonium phosphate in the market has surged significantly under the influence of multiple positive factors. More than half of August has passed, but judging from the market price, the upward trend of the mono ammonium phosphate market has not stopped. The cost of raw materials remains high, the available supply in the market is limited, and the demand in the autumn market continues to be released. Coupled with the boost from international market conditions, the price of monoammonium phosphate continues to rise. As of August 15, 2023, the domestic index for 55% powdered monoammonium phosphate has risen to 2861.43, and the 55% granular index has stabilized at 2820.00; the 58% powdered index has risen to 3133.33.

Since the beginning of July, the mono ammonium phosphate market has shown an upward trend. With the continuous release of positive news, the market price has accelerated its rise in August. The reasons are as follows:

1. Continuous adjustment of raw material prices, providing certain support to the market from the cost side.

• Sulfur: Recently, domestic sulfur prices have been fluctuating upward under the support of a positive fundamental outlook. As of August 15, the price of liquid sulfur from Shandong's local refineries ranged from 930-1010 yuan/ton. Downstream factories are actively entering the market to purchase, refinery inventories are selling without pressure, and most holders are not eager to sell, making it hard to find low-priced sources in the market. The market price is expected to remain high in the short term.
• Synthetic Ammonia: Due to the delayed start-up of some devices in the Shandong region, there is not much pressure on market supply in the short term. The enthusiasm of downstream businesses to enter the market and replenish stocks has increased, supporting the continued rise in market prices. Most market participants are bullish.
• Phosphate Rock: Currently, the overall operation of the phosphate rock market is relatively stable. Supported by good downstream demand, the domestic market price is stable with a rising trend. It is reported that the new price of phosphate rock may be implemented in early September, and the price of phosphate rock will remain high in the short term.

2. Continuous release of demand.
Autumn is the peak production season for high-phosphorus fertilizers, and the demand for phosphate fertilizers accounts for a relatively large proportion. Most major factories will choose to stock up in advance. From late June to early July, major factories began to enter the market to stock up. New orders were continuously concluded, and the quotations of mono ammonium phosphate manufacturers began to stop falling and rebound. With the signing of previous orders, factory inventories were smoothly reduced, and there were ample pending orders. Most factories began to suspend quotations, limit orders, and stop accepting orders. With the support of tight market spot circulation, market prices continued to rise.

In summary, the price of raw materials is still at a relatively high position, and there is still an expectation of an increase in the short term. The support given to the phosphate fertilizer market from the cost side is still there. Moreover, most monoammonium phosphate factories are still in a state of suspension and not accepting orders, and most companies have pending orders that can be executed until the end of August or early September. Although the start-up of the mono ammonium phosphate market is increasing, the tight supply situation has not been alleviated. Market participants are bullish, and most holders are not eager to sell. In addition, the international market is on the rise, boosting market sentiment. At present, with the simultaneous support of multiple positive factors, the price of monoammonium phosphate in the market may remain high in the short term. However, it is necessary to pay attention to the chasing sentiment of traders and downstream end-users as prices continue to rise.