Thread Content
Purchases from major manufacturers in the Northeast: Has the winter storage demand for monoammonium begun? Author/Source: China Fertilizer Network Date: 2020-09-14 Clicks: 7 Recently, the author learned that a major ammonium fertilizer manufacturer in Hubei has received orders for tens of thousands of tons in the Northeast, mainly from several large compound fertilizer producers in Liaoning, Jilin, and Heilongjiang. It is reported that the price of 55% powdered ammonium fertilizer in Jilin is around 2,000 yuan per ton (the same unit is used throughout), while in Liaoning it is around 1,980 yuan per ton. It is also understood that the price of 55% phosphate monoammonium at Bayuquan Port in the Northeast is around 1,940 yuan, with the product in question being monoammonium phosphate from regions such as Hubei, Yunnan, and Sichuan. From this perspective, has the winter storage demand for monoammonium in the Northeast fully kicked off? Actually, there isn’t. The specific situation in the Northeast is as follows. I. At present, only a few large compound fertilizer manufacturers are purchasing in moderate quantities. It is understood that this year, the start of operations for compound fertilizer manufacturers in the Northeast region has been delayed overall; it is expected that most of these companies will not resume production until mid-to-late October. As a result, purchasing activities are concentrated around the end of September. Recently, only a few large compound fertilizer manufacturers have made purchases in advance. As in previous years, these larger companies tend to purchase raw materials slightly earlier than most other compound fertilizer manufacturers. Although other companies start paying attention to raw material prices and inquiring about them at an early stage, they actually begin making bulk purchases around the end of September, and some companies still have not determined a specific date for resuming operations. II. The quantity of goods arriving is small; most are either being shipped or in transit. The author has learned that the supply of monoammonium phosphate in the Northeast region is currently limited; the first to arrive are likely the monoammonium phosphate products from enterprises in Yunnan, which have an advantage in terms of water transport, as shipping costs are relatively lower compared to land transport. Although the delivery time is longer, it is still possible to arrange shipments in advance. A few large factories in Sichuan also have an advantage due to good luck, and with relatively low export prices, the cost of delivering goods to the Northeast is also quite reasonable. Recently, the production and shipment processes at the large factories in Hubei have been slow. As the time for using fertilizer approaches in some areas, downstream customers are eager to receive their orders, and these factories also need a large amount of compound fertilizer for their own use. As a result, the shipment of ammonium nitrate is delayed. It is reported that ammonium nitrate is also being shipped in large quantities in the Northeast region, currently on its way there. III. Recently, prices in the Northeast have been mainly for powdered ammonium nitrogen; the prices of granular ammonium nitrogen and the availability of supplies remain unclear for now. It is reported that in the recent period, the ammonium nitrate arriving from the Northeast is mostly in the form of 55% powdered ammonium nitrate, while supplies of granular ammonium nitrate are currently limited. Fertilizer blending companies mostly use diammonium phosphate or granular monoammonium phosphate as raw materials. In previous years, the price of diammonium phosphate was relatively reasonable, so companies preferred to purchase 57% diammonium phosphate. This year, however, the situation is different; due to factors such as favorable export conditions, the price of diammonium phosphate has continued to rise. As a result, the supply of monoammonium phosphate in the domestic market has become somewhat tight, and its price has also increased. Under the current circumstances, it is difficult for fertilizer blending companies to find diammonium phosphate at a suitable price; when the price of monoammonium phosphate is relatively reasonable, they may opt for 55% granular monoammonium phosphate as a raw material. Based on the above information, an understanding of the situation regarding monoammonium phosphate in the Northeast region can be gained. It appears that there is some demand for winter storage of this product, but as a whole, this demand has not yet fully materialized. It is expected that the situation in the Northeast market for monoammonium phosphate will become clearer by the end of September. (Zhao Hongye)