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Can’t hold back the monoammonium? Hung up? Author/Source: China Fertilizer Network Date: 2020-12-03 Clicks: 15 The phosphate compound fertilizer conference did not cause any significant fluctuations in the market for monoammonium phosphate. Recently, companies dealing in monoammonium phosphate have maintained relatively stable pricing, but some traders who had been hesitant to sell earlier have started to release their stock. It is reported that the price of 55% powdered monoammonium phosphate at certain low-end levels, when sold on a cash basis, is slightly below 2000 yuan per ton (the same unit is used throughout). Enterprise quotes remain largely stable; currently, the mainstream ex-plant price for 55% powdered monoammonium phosphate in Hubei is around 2100 yuan, with only slight fluctuations in quotes from companies in certain areas. Some small manufacturers in Yunnan have raised their prices; currently, the ex-plant price of 60% ammonium sulfate has risen to 2300 yuan, the same level as those in Hubei. Orders will be suspended until the end of December ； A few large manufacturers in Sichuan have reduced their premium prices by 50 yuan; currently, the ex-plant price for 55% ammonium phosphate is 2050 yuan. Companies are not receiving many new orders, and for now they prefer to suspend taking on new business. So, what’s the actual situation with monoammonium? From the perspective of corporate supply. Most ammonium sulfate producers still have a large number of orders pending fulfillment, with delivery scheduled through the end of December; some larger companies can meet orders until next year. There are particularly many such large companies in Hubei Province, which received a large volume of orders earlier on. At present, they are mainly focusing on fulfilling those previous orders. Although these companies have shifted from suspending new order acceptance to controlling it, their capacity to take on new orders remains limited, with high-priced, small-scale orders being the main type of orders they can handle. The overall operating rate of enterprises remains around 50%; some larger enterprises maintain a higher level of operation. Those planning maintenance activities mainly carry out rotational maintenance of their facilities, so the overall operating rate stays relatively stable. Most enterprises focus on production, with only a few small factories shutting down for a period of time due to certain reasons. At present, enterprises do not have large inventories, and they produce and supply goods as they are manufactured. Regarding downstream demand. The conference on phosphorus-based compound fertilizers did not bring about any significant change in the compound fertilizer market. Dealers who had stocked up on low-cost compound fertilizers in advance do not have any plans to make further purchases at the moment. The sales performance of compound fertilizer manufacturers has not been very good recently; they are mainly fulfilling existing orders. Even with the introduction of new policies for winter stockpiling, these measures have not yet created a climate of increased purchasing activity in the market. It is reported that the ammonium phosphate purchased by compound fertilizer manufacturers in the recent period is sufficient for production until March. The high-priced ammonium phosphate purchased earlier arrived relatively quickly, while the low-priced version arrived more slowly. Compound fertilizer manufacturers have slowed down their purchases at present, preferring to wait for the ammonium phosphate purchased earlier to arrive at the factories one after another. It has recently entered the stage of sales by traders, who generally believe that now is a good time to sell. Even if the selling price is not very high, it is still higher than the purchase price before, thus allowing for some profit. It is reported that the general ex-factory price for spot currency is between 2,030 and 2,050 yuan, with only a few low-end products having a price below 2,000 yuan. Regarding upstream raw materials. Prices of sulfur began to rise ahead of the phosphorus fertilizer conference; port sulfur saw a significant increase due to declining inventory levels and rising prices on electronic trading platforms. Although there has been a slight decline recently, prices remain high. Currently, the price of granular sulfur at the Yangtze River port is around 900 yuan, while the prices of Puguang sulfur at the Wanzhou port and the Dazhou plant have risen slightly this week to 880 yuan and 820 yuan respectively. The rise in raw material prices provides a certain degree of positive support for the costs of monoammonium. In summary, the supply of monoammonium phosphate and its raw materials have not yet provided any positive support for this compound. However, factors such as traders releasing goods more recently and reduced purchases by compound fertilizer manufacturers have led to poor sales at high prices for monoammonium phosphate. In the short term, there is a possibility that its price will decline; yet, due to the large amount still in stock, some companies may continue to maintain relatively stable pricing. (Zhao Hongye)