SunSirs: Ammonium Phosphate Fell Down Due to Poor Demand in May

Price trend

According to the data monitoring of SunSirs, the average factory price of powdered ammonium biphosphate was 1,962 RMB/ton on May 1, and the average factory price of powdered ammonium biphosphate was 1,856 RMB/ton on May 31. The price fell by 5.39% during the month.

According to the data monitoring of SunSirs, the average factory price of 64% DAP on May 1 was 2,196 RMB/ton, the average factory price of 64% DAP on May 31 was 2,156 RMB/ton, and the price fell by 1.75% during the month.

Analysis review   

Ammonium biphosphate: The ammonium biphosphate market weakened this month, and prices fell steadily. The ex-factory quotation of 55% powdered ammonium in Anhui was 1,900-1,950 RMB/ton, and construction started steadily. The factory price of 55% ammonium powder in Hubei was about 1,850-1,950 RMB/ton, and the factory price of 60% powder ammonium was 2,050-2,100 RMB/ton. The market in Henan has maintained stable operation, the factory price of 55% powdered ammonium was about 1,950 RMB/ton, and the construction started steadily. The factory price of 55% powdered ammonium in Shandong was 1,800-1,900 RMB/ton, and the price was stable. The factory price of 55% powdered ammonium in Sichuan was about 1,950 RMB/ton.

DAP: The market demand for DAP was insufficient this month, and the market trend slightly lowered. The factory price of 64% DAP in Hubei was 2,150-2,200 RMB/ton, the factory price of 64% DAP in Shandong was 2,200-2,300 RMB/ton, the factory price of 64% DAP in Yungui was 2,300-2,450/ton, The 64% DAP mainstream ex-factory price in Anhui region was 2,200-2,350 RMB/ton. The 64% DAP mainstream ex-factory quoted price in Gansu was 2,250-2,400 RMB/ton. The price of 64% DAP in Heilongjiang region was around 2,450 RMB/ton.

Upstream: The domestic sulfur market is rising steadily, and the price of sulfur in ports has increased. However, there has not been a large number of transactions in the market. The holders in the port are not in a hurry to ship, and the buyers have also followed the market and the domestic refinery prices were adjusted slightly. On May 31, the reference price of sulfur was 526.67, which was an increase of 2.6% compared with May 1 (513.33). This month, the phosphate rock market as a whole has been weakly down, the market was weak, and the downstream support was insufficient. On May 31, the reference price of phosphate rock was 393.33, which was a decrease of 3.28% compared with May 1 (406.67).

Downstream: The market for downstream compound fertilizer companies was unclear, and this month's operation was weak, with prices falling slightly. Compound fertilizer companies were cautious about the purchase of raw material ammonium phosphate, demand was reduced, and equipment maintenance was increased. The preparation of fertilizers in the north and south was nearing completion. In the short term, due to insufficient demand, the market would continue to weaken.

Industry: According to the price monitoring of SunSirs, in May 2020, there were 1 type of commodities that rose in the price list of phosphorus chemical products, 4 types of commodities that fell, and 0 types of commodities that had a price change of 0. The main commodities that went up were: phosphoric acid (1.96%); the main commodities that went down were: yellow phosphorus (-7.82%), ammonium biphosphate phosphate (-5.39%), and phosphate rock (-3.28%). This month's average increase or decrease was -3.26%.

Market outlook

Analysts of SunSirs believe that the raw material market for ammonium phosphate in May may have risen or fallen, and the demand for downstream compound fertilizers is insufficient. Ammonium biphosphate received some orders in advance, reducing inventory pressure. The domestic demand for DAP has decreased, the supply has shrunk, and export competition is fierce. It is expected that the ammonium phosphate market will be weak and stable in the later period.

If you have any questions, please feel free to contact SunSirs with marketing@sunsirs.com