Summary: Ammonium phosphate prices increased slightly under the cost and supply support as the winter storage market has not fully started yet.

Monoammonium phosphate (MAP)

The overall domestic MAP prices showed a consolidation trend and prices in some regions mounted up. Most enterprises stopped offering quotations and held high their quotations as previous stage, but only a few new transactions were made. The current operating rates of compound fertiliser enterprises were at a low level; nevertheless, the needs for winter storage will release gradually in late Nov. Thus, operating rates of compound fertilisers will pick up as demand recovers. Accordingly, demand for raw material, MAP, may increase and quotations of enterprises are likely to climb.

Diammonium phosphate (DAP)

The North China market became depressed at present and the winter storage market in Northeast China has not fully started; downstream customers mainly took wait-and-see attitudes and few deals were seen. Quotations of most factories remained unchanged and some suspended offering quotations but mainly processed orders of early stage.

Supply

The overall supply of phosphate fertilisers was tight. Output and operating rates of MAP manufacturers slipped and the average operating rate hit around 45.27%; DAP operating rates averaged 49.41%. Manufacturers faced restrictions on production and transportation of some raw materials due to epidemic control in some places in the main producing area, Hubei Province, decreasing supply of enterprises to some extent. Some manufacturers in Southwest China have suspended or reduced production for a long time previously; some small factories resumed production recently, but the overall operating rate was still low.

Social inventories of phosphate fertilisers were low and operating rates of enterprises stayed at a low level. Some enterprises still have orders of early stage. Although the overall demand for phosphate fertilisers remained sluggish, enterprises faced little pressure under tight supply.

Cost

Prices of raw material, sulphur, rebounded; prices of phosphorus ore and synthetic ammonia kept at a relatively high level, providing support for phosphate fertiliser prices; some enterprises also showed eagerness to hold high prices.

Generally, the current demand for phosphate fertilisers was slack but there is still rigid demand in the near future. Quotations of phosphate fertilisers are expected to grow in the short term given support from supply and raw materials.