Manufacturers that have halted production of ammonium phosphate, as well as the current market trends for ammonium phosphate and phosphoric acid

The situation is okay; all the manufacturers I’m aware of are still in production. It’s just that the price has dropped a bit!

The production volume of phosphate at our company has not been reduced; phosphate is mainly used within our own factory. The production volume of monoammonium phosphate granules has been decreased, probably because it is off-season for phosphatic fertilizers

In the domestic market, the average ex-factory price for 55% powdered monoammonium nitrate is 2900–2950 yuan per ton (the same unit applies hereafter); the average ex-factory price for 55% granular monoammonium nitrate remains unchanged or is slightly lower. The price of 58% powdered monoammonium nitrate is around 3050 yuan, with some high-quality varieties costing slightly more at 3100 yuan. The average ex-factory price for 64% brown diammonium nitrate is around 3350 yuan, while that for 60% brown diammonium nitrate is around 3150 yuan, and 57% brown diammonium nitrate costs around 3050 yuan； The overall operating rate of the ammonium phosphate industry is slightly below 80%, remaining similar to that of the previous month. Sales of monoammonium phosphate are poor for the vast majority of manufacturers, and there is a trend toward a decline in the industry’s operating rate. In the first half of this month, diammonium phosphate was mainly exported, while in the second half it was primarily used for domestic replenishment; supply remained tight throughout. However, later on, sales of low-content diammonium phosphate slowed down and its prices dropped slightly. This month represents a transitional period between the autumn market and the winter storage market, and the overall economic situation plays a crucial role in determining the future trend of fertilizers; it can be said that the market conditions remain uncertain for now. Taking into account factors such as overall policy trends and raw material prices, it is expected that the stabilization trend observed in monoammonium phosphate by the end of this month will continue after the National Day holiday. Even if there is a slight increase in prices, caution is still needed regarding the risk of further declines. In October, the supply-demand imbalance for diammonium phosphate in China will gradually become apparent, leading to an increasing likelihood of price cuts. ——Excerpted from China Compound Fertilizer Network

At present, the production facilities for phosphatic ammonium are mostly in operation. In late October, the phosphate ammonium market was hit by a severe downturn. Yuntianhua took the lead in reducing the delivery prices of diammonium phosphate in the Northeast region by 64% on Wednesday, followed by similar price cuts from companies such as Hubei Yihua and Guizhou Kailin. As of now, the prevailing market price is 3,100 yuan per ton upon arrival in the Northeast, with a generally bearish sentiment in the market. The sudden drop in the price of diammonium has left monammonium at a loss. With no demand currently, monammonium manufacturers have not made any corresponding price adjustments and are instead in a position of forced waiting. Under this influence, the current prices of monoammonium and diammonium fertilizers have lost their meaning; as a result, the market remains stagnant. There is hope that the meeting on phosphate compound fertilizers will clarify the market situation. It is understood that, given the current difficult situation, many ammonium sulfate manufacturers have significantly reduced production or even stopped operations. Some believe that the substantial price cuts implemented by leading companies like Yuntianhua will serve as a benchmark for the industry, making it inevitable for other companies to follow suit and reduce their prices as well. However, such a significant price cut is only affordable for companies like Yuntianhua and Kailin; other small and medium-sized enterprises or those without resource advantages will inevitably face severe difficulties. Some analysts believe that given the good profits achieved by phosphatic ammonium companies in the earlier periods, a slight loss of around 50-100 yuan per ton in the fourth quarter is still acceptable; however, losses exceeding this amount would be difficult for these companies to bear! In short, the market presents both opportunities and challenges; the impact of price cuts is such that it is difficult to cope with in the short term. Therefore, the author suggests that caution should still be exercised in market operations prior to the phosphate compound fertilizer conference. It is reported that, based on a comprehensive understanding of the traders, there are certain limitations to Yuntianhua’s ability to sell at low prices: 1. The product supply is targeted, and the quantity is limited. 2. If acceptance for delivery is desired, the price will increase by 180 yuan per ton, reaching 3280 yuan per ton. The buyout price at the destination is 3.3100 yuan per ton, with the quantity restricted to 20% of the total quantity. The prices for the remaining products will be determined separately. Recently, the transaction price of 55% powdered monoammonium has mostly remained around 2,800 yuan per ton. Due to the relatively high prices in the previous period, along with manufacturers’ price cuts, dealers are cautious. It is expected that after the phosphorus compound fertilizer meeting, in order to avoid the peak travel period during the Spring Festival, businesses in the Northeast region will start making payments to stock up on supplies around mid-November.