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Raw material boosts, demand surges – is the price of monoammonium nitrate soaring happily? Author/Source: China Fertilizer Network Date: 2020-10-22 Clicks: 5 The price of monoammonium phosphate has risen sharply recently; as of now, the premium ex-plant price for 55% powdered monoammonium phosphate in Hubei Province has reached 1880–1900 yuan per ton. Smaller manufacturers, which offer a price of 1830 yuan per ton for ex-plant delivery, have also stopped accepting orders. It should be noted that before the price increase, the actual ex-plant price of 55% powdered monoammonium phosphate in Hubei was between 1780–1830 yuan per ton ； Following a 50-yuan increase last week, the pricing at Sichuan’s large manufacturers has risen another 50 yuan this week; currently, the ex-plant price for 55% ammonium sulfate is 1,900 yuan ； Sales in the Yunnan region have also been satisfactory recently; for some smaller manufacturers, the actual selling price of 55% ammonium sulfate was between 1630–1650 yuan earlier on, but it has risen to 1700 yuan this week. As can be seen from the above, the price increase for 55% ammonium carbonate is between 50 and 100 yuan, while the actual increase in transaction prices has been 50 to 70 yuan. So why does this happen? Raw material boost. The price of raw phosphate rock has remained relatively stable for a long time, but with the onset of the winter period during which mining is restricted, there has been a slight increase in prices, ranging from 10 to 30 yuan. Although downstream manufacturers are not very receptive to these price increases – for example, the increase in phosphate rock prices in Henan is currently only between 0 and 5 yuan – this still represents a significant proportion of the cost of monoammonium phosphate, thus having a considerable impact. Sulfur prices have continued to rise after the holiday. In previous years, sulfur prices tended to increase around the time of phosphorus compound fertilizer conferences. The prices of sulfur produced by Puguang at the Wanzhou port and Dazhou plant rose to 780 yuan and 750 yuan respectively, while the price of granular sulfur at Yangtze River ports also increased to 755 yuan. This has had a positive impact on the cost of monoammonium phosphate as well. Demand is increasing. Although some large compound fertilizer manufacturers had already stocked up appropriately before the National Day holiday, and there was little demand for additional orders after the holiday, the postponement of the phosphorus compound fertilizer conference and the continuous rise in the prices of nitrogen and potassium raw materials have led to smaller and medium-sized compound fertilizer enterprises across the country also joining the effort to purchase raw materials. Although the quantity per order is not large, the market atmosphere is favorable. Moreover, most ammonium sulfate producers do not face inventory pressures, and compound fertilizer manufacturers are quite enthusiastic about making purchases, believing that the upward trend in ammonium sulfate prices will continue for some time, making such purchases relatively safe. As a result, they tend to buy in appropriate quantities. However, there is a shortage of ammonium sulfate in the market, so it is difficult to obtain it in stock. Supply is tight. From late September to the end of the month, some large manufacturers of compound fertilizers began purchasing ammonium monoamide, the raw material needed for winter use, in order to build up their stock levels. They believed that the price of ammonium monoamide was relatively low at that time, making it a safer option to make such purchases. Additionally, the procurement needs of several large manufacturers in the Northeast contributed to this trend, prompting ammonium monoamide producers to start preparing for winter production earlier than usual. Companies that had planned to carry out maintenance work in October also postponed those plans temporarily. Several large manufacturers in Hubei had a large amount of orders pending and began to control the number of new orders they accepted. After the National Day holiday, and with the postponement of the phosphate compound fertilizer conference, many small and medium-sized compound fertilizer manufacturers began to purchase raw materials. As a result, the number of orders awaiting fulfillment for ammonium phosphate manufacturers increased. Some large ammonium phosphate producers stopped providing quotes and accepting orders, leaving only a few companies capable of taking on new orders, most of which are focused on fulfilling existing orders. In summary, the positive factors related to monoammonium prevail; prices are likely to continue rising in the short term, and actual transaction prices are also expected to see further modest increases. If there is any part of our analysis and market data that you would like to learn more about, you can call the consultation hotline at 0451-88001128. 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