Weak trading in the diammonium market, with prices remaining low**

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Weak trading in the diammonium market, with prices remaining low. **Author/Source: China Agricultural Inputs Distribution Association. Date: 2019-08-08. Clicks: 9. http://my.fert.cn/attached/image/20190808/20190808104213_687.jpg. Last week (July 29–August 2), trading of diammonium products was weak both domestically and internationally; few new deals were concluded, and prices stayed low.** On August 5, China’s Phosphoric Acid Diammonium Wholesale Price Index (CPPI) was 2,841.90 points, down 5.85 points on a month-on-month basis, representing a decline of 0.21% ； It dropped by 10.38 points on a year-on-year basis, representing a decline of 0.36% ； It dropped by 379.87 points from the base period, representing a decline of 11.79%. http://my.fert.cn/attached/image/20190808/20190808104229_62.jpg On August 5, China’s Retail Price Index for diammonium phosphate (CPRI) was 2954.99 points, down by 9.84 points on a month-on-month basis, representing a decline of 0.33% ； It dropped by 10.68 points on a year-on-year basis, representing a decline of 0.36% ； It dropped by 266.78 points from the base period, representing a decline of 8.28%. 　　Supply situation: In the domestic market, traders are responsible for shipping, and new orders are generally handled on a case-by-case basis. On the export side, port inventory of diammonium nitrate is around 570,000 tons; ports in the south are gradually receiving shipments, while shipments from Yangtze River ports are limited and the pace of accumulation there is slow. In terms of raw materials, sulfur prices at ports have remained stable; downstream factories have accelerated their purchasing pace, and the trading atmosphere in the port’s spot market has improved ； Phosphorus ore companies are mainly focusing on shipments, with limited new orders being placed. In Hubei region, the price of phosphorus ore with a purity of 30% for shipment by ship is currently between 440 and 450 yuan per ton, and shipments are proceeding fairly well ； In the liquid ammonia market, there is still no significant improvement in demand; adjustments are mainly regional in nature. Trading in the main production areas is performing well, with prices remaining stable. Last week, the average operational rate of enterprises was around 56%, with overall activity remaining low and stable. 　　Demand Situation In the domestic market, demand is relatively weak in the autumn; the volume of new orders is limited. Traders are eager to sell their goods, but downstream buyers show little enthusiasm to purchase them, resulting in price declines in some areas. In terms of export markets, the overall export situation is poor; prices at the lower end have declined. Export companies are inclined to hold their prices steady, but the international market for diammonium phosphate is weak, resulting in few new export orders in China. As a result, most companies are gradually shifting their focus to the domestic market. 　　International Market 　　Demand in international markets is weak, with prices remaining generally stable. Specifically, inventory levels in the Southeast Asian market remain high, while buyer-driven markets such as India and Pakistan purchase goods on demand, resulting in limited new orders. In terms of prices, last week the FOB prices in Tampa Port, USA, Tunisia, Morocco, and the Baltic/Black Sea regions were 332 US dollars per ton, 355–365 US dollars per ton, 335–360 US dollars per ton, and 330–335 US dollars per ton respectively, remaining stable on a week-on-week basis ； China FOB: $334–340 per ton, down by $4 per ton on a week-on-week basis at the lower end ； The CIF price in India is $349–350, remaining stable week-on-week ； The CIF price in Pakistan is $353–354 per ton, up by $1 per ton on a week-on-week basis at the lower end. http://my.fert.cn/attached/image/20190808/20190808104248_547.jpg Table: Price changes of diammonium phosphate in major international regions Compiled based on relevant data Domestic situation Data from 23 provinces monitored by the association show that the wholesale price of diammonium phosphate in China remained relatively stable on a week-on-week basis, with slight increases and decreases in some areas. Among them, the prices in Henan, Gansu, and Xinjiang provinces (regions) showed an upward trend, with increases of 10.7 yuan/ton, 50 yuan/ton, and 8.3 yuan/ton respectively ； In Hebei, Anhui, and Hubei, prices declined by 31.8 yuan per ton, 30 yuan per ton, and 18.9 yuan per ton respectively, while prices in the remaining provinces remained stable. The retail price of diammonium phosphate in China remained relatively stable on a week-on-week basis; in Henan, Sichuan, and Gansu provinces, prices increased by 1.8 yuan/ton, 3.3 yuan/ton, and 50 yuan/ton respectively ； Prices in Hebei, Anhui, Hubei, and Xinjiang declined by 36.4 yuan/ton, 77.3 yuan/ton, 33.1 yuan/ton, and 1.7 yuan/ton respectively, while prices in the remaining provinces remained stable. 　　Table: Changes in the wholesale price of domestically produced diammonium phosphate (64%) (unit: yuan/ton) Data source: China Agricultural Inputs Distribution Association Table: Changes in the retail price of domestically produced diammonium phosphate (64%) (unit: yuan/ton) Data source: China Agricultural Inputs Distribution Association Future outlook At present, the prices of diammonium phosphate raw materials remain relatively stable with only slight fluctuations; costs provide only moderate support for diammonium phosphate prices ； The autumn market started slowly, with low enthusiasm among downstream buyers to purchase goods. Supplies have begun to arrive in the North China region, but the spread of these supplies to other areas is slow ； Sales in export markets are limited, with a strong atmosphere of caution in the market. Overall, there are significant negative factors in the market, and it is expected that diammonium prices will remain weak in the short term. (Joelying)