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Sharp Rise in Prices for Monoammonium Phosphate – The Focus of Attention. Author/Source: China Fertilizer Network. Date: 2020-11-09. Clicks: 8. The market for monoammonium phosphate is performing very well; prices are no longer stable for weeks, months, or even longer as they used to be. Recently, prices have risen sharply, with an accelerated increase in the past few weeks. At the beginning of this week, it was reported that the ex-factory price of 55% powdered monoammonium phosphate in Hubei region reached 2,050 yuan per ton. It was already surprising enough that the price had risen to 2,000 yuan and that transactions were taking place at that level. Now, some companies are offering an ex-factory price of 2,050 yuan for 55% powdered monoammonium phosphate, and orders can be accepted at this price. Why is the price of monoammonium rising so sharply? It is reported that this is mainly due to the limited availability of ammonium sulfate in the market; even those traders who have stock are reluctant to sell for now, waiting for its price to rise further. As for the factories, there are many orders for ammonium sulfate that will not be fulfilled until after a month, with some companies having orders that will not be processed until the end of December. Currently, it is a seller’s market for monoammonium phosphate; companies downstream that are in urgent need of this product are forced to compromise, considering that the price of monoammonium phosphate is not an issue – what truly matters is being able to obtain it. So, what’s the situation with Yiammon in all aspects? First, there is a supply shortage. Recently, there has been no significant change in the overall operating rate of ammonium sulfate production facilities; the industry’s overall operating rate is less than 50%. However, several companies are currently undergoing maintenance on their facilities. This is mainly because the pandemic this year has caused delays in the scheduled maintenance activities, with some companies taking 10 days or even a month for such maintenance starting around mid-October. Most ammonium phosphate manufacturers have little inventory, and this low inventory level has persisted for a long time. The purchasing activity of raw materials for winter storage around the National Day holiday has led to an increase in the number of orders that these manufacturers still need to fulfill; as a result, they prefer to suspend or limit new orders. Spot supplies in the market are scarce, and supply is tight. Many phosphorus-based fertilizer manufacturers also have significant demand for products for their own use. It is reported that large ammonium phosphate producers in Hubei have customers who purchased ammonium phosphate in advance and are now waiting to pick up their orders. Many traders do not have stock available, and those who do have it are temporarily reluctant to sell. Secondly, there is support from demand. Starting from before the eleventh, various compound fertilizer manufacturers began to purchase winter stock of ammonium nitrate as a raw material. In particular, the larger companies that engaged in winter stockpiling made large purchases in advance, which resulted in an increasing backlog of ammonium nitrate among manufacturers in Hubei – sometimes exceeding 100,000 tons. Coupled with the urgent demand from these purchasing companies, there was little inventory of ammonium nitrate available, and there was also a shortage of goods in the market. After the price of ammonium nitrate rose, confidence in it grew within the industry; although initially it was difficult to accept such high prices, as confidence increased, demand from compound fertilizer manufacturers continued to rise. Although the quantities purchased each time were not large, their enthusiasm for buying remained high. The inventory of monoammonium phosphate purchased by some large compound fertilizer manufacturers is sufficient to cover production until December; however, fearing a shortage of this substance in the future, these companies are continuing to stock up heavily. Finally, raw materials provide a boost. Phosphorus ore will enter a period of restricted mining in winter, and its price remains relatively stable over an extended period; as a result, the price has been increased by around 10–30 yuan. Although the increase is not significant, it accounts for a substantial proportion of the cost of monoammonium phosphate, thus providing some support for an increase in its price. Sulfur prices have continued to rise since the end of the National Day holiday, with increases of around 100 yuan. Although factors such as high inventory levels in Gaogang pose obstacles, the market atmosphere remains relatively positive, which provides some support for monoammonium nitrate prices. In summary, the positive factors surrounding monoammonium prevail, and there is a possibility of further increases in both quotes and actual transaction prices in the short term. (Zhao Hongye)