Price Trend
According to data from SunSirs’ bulk commodity data base, the domestic market price of DAP has remained low. Till 13th November, the average ex-factory price of 64% diammonium is RMB 2,335 yuan/ton, which is 1.34% lower than that at RMB 2,366.67 yuan/ton on 1st November. On 13th November, the DAP commodity index was 69.65, which was the same as yesterday, setting a historical low in the cycle. It was 32.37% lower than the highest point at 102.98 on 8th October 2011 (Note: Cycle refers to since 1st September 2011).
Market Analysis
Products: The trading of DAP market is light and the market is sluggish. At present, the mainstream price of 64% diammonium in Hubei Province is RMB 2,250-2,450 yuan/ton, the mainstream price of 64% diammonium in Shandong Province is RMB 2,300-2,500 yuan/ton, and the mainstream price of 64% diammonium in Yungui area is RMB 2,350-2,500 yuan/ton. In Anhui Province, the mainstream price of 64% diammonium is about RMB 2,400 yuan/ton.
Industry chain: At present, the market of phosphate rock market remains stable. The current inventory pressure is relatively large, and small-amount procurement is maintained by downstream players. The domestic sulfur market price continues to fall, and the market mentality is mainly negative. Hence, it is more likely to continue to fall. The domestic liquid ammonia market price fell. And the whole market is not optimistic in the short term. The trade is poor with focus downward. The operating rate of diammonium is about 50%. Some of enterprises are being maintained.
Industry: According to the data from SunSirs, there are 10 kinds of chemical commodities rising on the list of bulk commodity on 13th November 2019. Among them, 1 has above 5% increase, accounting for 1.2% of the number of product monitored in the sector. Top 3 commodities are hydrochloric acid (19.18%), R22 (4.80%) and chloroform (3.81%). On the other hand, there are 18 kinds of commodities with a decrease within a period. 1 of them has a more than 5% decrease, accounting for 1.2% of the number of product monitored in the sector. Top 3 commodities are epichlorohydrin (-11.45%), urea (- 3.23%) and lithium carbonate (-2.70%). The average price change rate is 0.06%.
Market Forecasting
SunSirs’ DAP analysts believe that the market price of DAP’s raw material has fallen. The market demand is insufficient, and the industry has a strong wait-and-see attitude. As the Phosphate Compound Fertilizer Conference approaches, it is expected that good news will come. And DAP market will trade sideways in later stage. It is recommended to pay attention to dynamics of real-time market of DAP industry.
If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.