Summary of the compound fertilizer market conditions across China in May 2016

Weekly Report on the Compound Fertilizer Market for the Fourth Week of April Author/Source: China Fertilizer Network Date: 2016-05-03 Clicks: 5 This week, the pricing offered by compound fertilizer manufacturers remained generally stable. Currently, in Shandong province in China, the factory prices for a small portion of 45%Cl (15:15:15) compound fertilizers range around 1800–2050 yuan per ton (the same unit is used throughout). The factory prices for a small portion of 45%S (15:15:15) compound fertilizers are around 2150–2250 yuan per ton ； In the Two Rivers region, the factory prices for some 45% Cl(15:15:15) compound fertilizers range around 1750–1850 yuan, while the factory prices for some 45% S(15:15:15) compound fertilizers are around 1960–2120 yuan ； In the Two Lakes region, the export prices of some 45% Cl(15:15:15) compound fertilizers range around 1750–1880 yuan, while the export prices of some 45% S(15:15:15) compound fertilizers are around 2050–2150 yuan. At present, the demand during spring has come to an end, and the demand for fertilizer preparation in summer has begun. The need for fertilizer preparation in the Central Plains region has persisted for some time now; in certain areas, dealers have already stocked about two-thirds of the required amount of fertilizer. The demand for fertilizer used in rice cultivation in southern regions such as Anhui has also started to rise. Currently, high-nitrogen fertilizers and chlorinated fertilizers are in short supply, while the demand for sulfur-based fertilizers is quite low. Demand in the Northeast region has come to an end; only some areas in Liaoning still have a need for fertilizers for rice cultivation. In Heilongjiang, changes in the planting structure have led to a slight demand for fertilizers for miscellaneous grains in the later stages. Most enterprises in the Northeast have stopped operations for maintenance, and a few have already sold out their inventory and ceased accepting orders. In most other regions, business activity remains relatively stable; only in places such as Hunan and Sichuan is demand low during the summer, and many companies have gradually started to shut down for maintenance. At present, the overall operating rate of compound fertilizer manufacturers remains around 77%. Regarding raw material costs: The results of the bidding process for urea in India were released this week, and the prices there were low; this did not help to boost domestic prices. Prices remained stable or slightly declined, with the current mainstream price in Shandong region being between 1330 and 1350 yuan ； Monoammonium phosphate remains weak; currently, the mainstream ex-factory price for 55% powdered monoammonium phosphate nationwide is 1,750 yuan ； Salt lake potash producers have raised their prices by 40 yuan, but market experts believe that demand for potassium chloride is low during this off-season, so it’s unlikely that such price increases will persist ； The market for potassium sulfate remains stable; the prices upon arrival for 50% powder and 51% powder are between 2150 and 2200 yuan, with actual prices usually not exceeding 2100 yuan. The market prices of raw materials remain generally stable, with only occasional fluctuations; these have little impact on the pricing of compound fertilizers. Only high-nitrogen fertilizers, in demand during certain periods, might see a slight price increase as a result. Overall, the compound fertilizer market is still in a phase of demand; sales by companies remain steady, and prices remain stable. Only when there is concentrated purchasing of high-nitrogen fertilizers in the Central Plains region might the prices of such fertilizers see a slight increase, but the extent of this increase will be small and it will not affect the overall stability of compound fertilizer prices.

Diammonium phosphate: Spring plowing activities are coming to an end; it’s necessary to identify demand accurately and explore it further. Author/Source: China Agri-Media. Date: 2016-05-03. Clicks: 5. Last week, the distribution of diammonium phosphate in the domestic market was still in its final stages, with fertilizer use for spring plowing ongoing; most distributors were in the process of clearing their inventories. Companies are mainly fulfilling previous orders, with few new ones. Some manufacturers have already settled their accounts with distributors, using the factory prices for those settlements, while for new orders, individual negotiated purchase prices are applied. Manufacturers and traders are still watching the export market; some companies are in talks regarding export orders, but the prices have not yet been finalized. In the long term, it will become increasingly difficult to export diammonium compounds, and competition in the domestic market will also intensify. To secure a share in the domestic phosphate fertilizer market, it is essential to closely monitor **macro-control over agricultural production, accurately identify demand, and achieve targeted sales and production. 　　Export prospects are not very optimistic. Last week, about 60% of the ammonium diammonium phosphate production facilities in the southwestern region were operating, a decrease compared to the same period last year. Domestic orders are nearing completion, with most shipments related to prior orders; some companies have plans to shut down their facilities for maintenance. Production in Hubei remains stable; the prevailing ex-plant price for 64% diammonium phosphate is between 2,200 and 2,450 yuan per ton. In the Northeast, the estimated price upon arrival at the port is 2,700 yuan per ton. Settlements for previous orders are being processed, with prices remaining roughly the same as those quoted earlier. Companies show little enthusiasm for gathering goods at ports and are still waiting to see how the export market develops. Orders in the Shandong region are scarce; the ex-plant price for 57% diammonium phosphate is around 2,300 yuan per ton. Some companies have suspended giving prices and instead settle deals on a case-by-case basis. There are plans to shut down facilities for maintenance in the future. The diammonium phosphate market in the northwest region is gradually slowing down, with some manufacturers choosing to shut down for maintenance or reduce production. 　　The distribution of products in the domestic market at the grassroots level is entering its final stage; companies are mainly fulfilling previous orders. Prices remain relatively stable, with no significant fluctuations expected. Previous orders are being settled one after another, and the settlement prices are roughly on par with the initial quotes. The operating rate of domestic diammonium phosphate manufacturers is around 55.00%, up 3.21 percentage points on a month-on-month basis, but there remains a risk of further decline in the near term. 　　By the end of April, the domestic diammonium phosphate market entered a slow sales period; only limited demand remained in parts of North China and East China, while trading activity was minimal in other regions. The international market remains weak, failing to provide positive support for the diammonium market. Following the FMB meeting, the market expects a slight increase in international demand, but the continuously falling offshore prices render export operations highly unfeasible, prompting companies to be cautious about taking orders. Although India has a demand, it is not in a hurry to purchase from our country, aiming to keep pressing down on our export prices. 　　Fang Jinsong, general manager of Anhui Liuguo Chemical Co., Ltd., believes that demand for diammonium compounds is declining both domestically and internationally at present. However, it’s necessary to get through difficult times year after year, and the key is to focus on meeting end-user demands. 　　Traditional enterprises need comprehensive upgrading. “Changes in the distribution channels in the agricultural inputs industry have been quite significant in recent years.” From the perspective of a traditional fertilizer manufacturer, it would be great if the industry had clear divisions of responsibilities: we focus on production while others handle sales. But in reality, manufacturing enterprises must take on more responsibilities; they not only have to carry out production and procurement themselves, but also handle sales. In terms of sales channels, large-scale distribution is handled by companies such as Sinograin, Sinochem, and those within the supply and marketing system. Our own company also has many small distributors and storage providers, all of whom play an important role in the distribution network. Regarding the rise of e-commerce, we are not afraid of the challenges, but we pay attention to the potential problems that may arise. ”Fang Jinsong emphasized, “For example, with the delivery services we use ourselves, during holidays it becomes very difficult for consumers to receive their goods within a short time frame.” If fertilizer companies abandon old methods and adopt new ones in transportation, distribution, including storage, they must confront this crux. ” 　　Lv Wen, deputy general manager of Sinochem Fertilizer Co., Ltd., believes that in the process of reducing overcapacity and in terms of structural adjustment within the fertilizer industry, it is necessary to recognize the two key factors that determine the development of this sector: one is improving the efficiency of fertilizer use, and the other is improving the efficiency of resource utilization. “The inability to improve fertilizer utilization means pressure on environmental protection, as well as inflated costs for farmers growing grain. Only by truly improving the efficiency of fertilizer use can environmental pollution be reduced, and only then can farmers’ costs associated with growing crops be truly lowered. Ultimately, resource utilization is a matter of scientific fertilization; in this aspect of scientific fertilization, it is actually the process by which innovative technologies are put into practical use, including the integration of various facilities and the reduction of fertilizer use. ” 　　Lü Wen said, “Market competition forces us to meet new demands, and we also have to face challenges in terms of investment and research and development. The risks brought about by market changes are primarily something that companies need to bear.” ”From the perspective of the demand-side structure, the emergence of new growers represents a significant change, and **policies are also actively facilitating their development. This type of demand is fundamentally different from that in the past market; it requires a complete package of fertilizers and services, or even a comprehensive industrial chain to support it. Can fertilizer manufacturers integrate existing resources and optimize their allocation to meet demand? These are questions raised regarding the domestic fertilizer industry. Overall, **under the influence of policy regulation and the continuous inflow of social capital, agricultural modernization will be an important component of economic development in the coming period**. In Lu Wen’s view, agriculture is the gold mine of the future – a new source of wealth that could replace real estate. To become successful \"gold miners,\" we must first \"improve our tools\" before we can do our work well.

The summer market for compound fertilizers is now in full swing; however, there is little chance of price increases in the future. Author/Source: China Agri-Inputs Media. Date: May 3, 2016. Views: 5. The summer corn fertilizer market is gradually unfolding in Central, East, and North China, with manufacturers showing a strong willingness to distribute their products at the grassroots level. However, just like during the fertilization season for spring wheat, the distribution and acquisition of products at the grassroots level are once again delayed. When will the peak period for the use of fertilizers at the grassroots level in summer arrive? Will the price of corn fertilizers fluctuate during the fertilization season? What about the use of fertilizers for rice and cash crops south of the Yangtze River? Will the introduction of corn subsidy policies and the Ministry of Agriculture’s measures to adjust the corn planting structure have an impact on fertilizer use in the summer? This week, we will focus on the issues mentioned above. 　　Factory prices for compound fertilizers remain stable The compound fertilizer market has been relatively stable this week. The quotes from Shandong-based manufacturers for 45% chlorine-based compound fertilizer are generally above 1,800 yuan per ton, while those for 45% sulfur-based compound fertilizer are generally above 2,000 yuan per ton. In the Jiangsu and Zhejiang regions, the mainstream pricing for 45% chlorine-based compound fertilizer manufacturers is above 1,700 yuan per ton, while the pricing for 45% sulfur-based compound fertilizer is above 1,950 yuan per ton. The prices of first-tier brands of 45% chlorine-based compound fertilizers in Henan and Hubei are above 1,850 yuan per ton. Xie Gaoping, general manager of Gaoping Agricultural Inputs Co., Ltd. in Anqing City, Anhui Province, said that the arrival price of 45% chlorine-based compound fertilizers in the Anhui region is usually above 1,910 yuan per ton. Fertilizers used for corn in the later growth stages are mainly high-nitrogen fertilizers; the low-end factory price is around 1,500 yuan per ton, while the high-end factory price tends to be around 1,700 yuan per ton. Due to the moderate market demand after the New Year, many companies are now offering fixed prices per order, with the actual transaction prices being slightly lower than the quoted amounts. 　　At present, the spring market has largely come to an end, and the summer corn fertilizer market has fully commenced operations. Fertilizer manufacturers have already introduced relevant policies in advance, and distributors at the provincial and municipal levels in regions such as Henan, Hubei, and Shandong have begun making payments one after another. Similar to the fertilizer application period for spring wheat, local distributors are not active in stocking up supplies. Compared to ordinary compound fertilizers, the price of high-nitrogen fertilizers is more significantly affected by urea. Recently, urea prices have experienced further slight fluctuations, moving in a downward trend. A senior agricultural supplies dealer in central Henan who wished to remain anonymous said that the wholesale price of urea in the region has once again dropped below 1,400 yuan per ton. As a result, dealers at the local level are becoming even more cautious. Recently, the inventory levels of compound fertilizer manufacturers have increased; in some cases, inventory levels exceed 80%. The overall operating rate of compound fertilizer production facilities has dropped to around 50%. 　　Although market demand remains average, compound fertilizer manufacturers are clearly determined to maintain prices; most opt for subtle price cuts rather than outright reductions. Recently, there have been virtually no significant price drops. 　　The possibility of a significant increase in prices during the peak season is low. After June, the first and second crops of rice in the Yangtze River basin, as well as the corn grown extensively in Central, North, and East China, all enter their peak periods for fertilizer use. During spring, the peak and off-peak periods for fertilizer demand are quite distinct; in particular, for urea, there is a clear trend of rising sales prices during the peak season. Will fertilization in summer continue this phenomenon? In response, the respondents unanimously said the likelihood was low. 　　Xie Gaoping said that the area mainly uses fertilizers for rice and cash crops, with a small area dedicated to corn cultivation. Fertilizer use in this area throughout the year is neither as even as in South China nor as concentrated as in the Central Plains region. It is expected that there will be no significant fluctuations in the market price of compound fertilizers before the fertilizer application period at the grassroots level arrives in June. A senior agricultural inputs distributor in central Henan, who preferred to remain anonymous, said, “The price of compound fertilizers does not fluctuate as much as that of urea. There is still over a month left until the peak period for fertilizer use at the grassroots level, and manufacturers have already started delivering goods to the markets.” By the time fertilizers are actually needed, the supply will be relatively sufficient. Moreover, with fierce competition in the market and falling prices for raw materials, it is unlikely that the price of compound fertilizers will rise by then. ” 　　In fact, due to the increasingly fierce market competition, even if there is a slight increase in the price of compound fertilizers later on, it is usually borne by distributors at all levels. This view was fully demonstrated in last year’s market – in the first half of last year, the market was favorable and compound fertilizers saw a slight increase of 50–100 yuan per ton. However, due to concerns that consumers would not accept such increases, wholesalers and distributors shared the pressure resulting from those price rises, and as a result the actual retail prices in the market remained unchanged. 　　Adjustments in crop structure affect fertilizer use. Corn, the main player in fertilizer demand in the summer market, has been the star of the grain industry this year. From early December last year, when Pan Wenbo, deputy director of the Planting Management Department of the Ministry of Agriculture, clearly stated that \"the focus of the new round of grain structure adjustment is to reduce the area dedicated to corn cultivation,\" to April 7 this year, when Ye Zhenqin, head of the Ministry of Agriculture’s office and spokesperson, said at a press conference that \"adjusting the corn cultivation pattern is a key aspect of the overall structural reform in the agricultural supply side,\" the Ministry of Agriculture has issued statements on several occasions over just a few months, explicitly calling for a reduction in the area used for growing corn. According to the \"China Agricultural Outlook Report (2016–2025)\\" released by the Ministry of Agriculture on April 22, it is expected that during 2016 and throughout the 13th Five-Year Plan period, China’s corn planting area will decrease significantly, while soybean imports will slow down markedly. Tang Ke, director of the Market Department at the Ministry of Agriculture, said that this year, the area dedicated to corn cultivation is expected to decrease by more than 17.5 million mu compared to the previous year – marking the first time in 13 years that the area planted with corn has declined. Along with the adjustment of the planting structure, the policy for the temporary purchase of corn will be changed to a new mechanism of \"market-based purchasing\" plus \"subsidies\", with the subsidies being distributed directly to those who actually grow corn. However, Chen Xiwen, deputy head of the Central Leading Group on Rural Work, said recently at the 2016 China Agriculture Development Forum that for each jin of corn, “the subsidy plus the price at which it is sold will not exceed 1 yuan.” 　　In the future, adjustments to the structure of corn cultivation, with a reduction in planting areas, will directly affect changes in the fertilizer market. What is the situation this year? A senior agricultural supplies dealer in central Henan who declined to be named said, “The area dedicated to corn cultivation here has indeed decreased, but this is not necessarily due to policy influences.” Since the policy was introduced this year, farmers are not very clear about it. ”The further reduction in the area dedicated to corn cultivation locally is due to profit issues; “There was a severe drought here the year before last, and many corn growers suffered losses.” Last year, corn prices were too low (**last year, the temporary purchase price for corn was reduced to 1 yuan per jin, a decrease of around 0.12 yuan per jin); growing corn was not profitable, which is why many people decided not to grow it this year. If fewer seeds are planted, I expect the amount of fertilizer needed to also be less. ” 　　Clearly, with the **adjustment of the cropping structure**, it is expected that in the future, the timing of fertilizer application, as well as the corresponding amount and types of fertilizers used, will also change; this change will become even more pronounced going forward.

Urea price trends across China Author/Source: China Fertilizer Network Date: 2016-05-04 Clicks: 5 Sales in the urea market are moving slowly, and new orders are weak; since the holidays, urea prices have continued to fall in most regions. Industrial demand in the Shandong region is currently weak; new orders for urea manufacturers are average, and the mainstream ex-factory prices have dropped by 20 yuan (per ton, the same below) to 1310–1320 yuan. It is reported that the price at delivery in Linyi is 1360 yuan ； Urea manufacturers in Hebei Province mainly sell their products through port shipments and local sales; however, the number of ports from which shipments are made is limited. The standard Out of factory prices have dropped by 10 yuan, to between 1300 and 1360 yuan, while there is still virtually no demand for high-end products ； Manufacturers in the Henan region are mainly fulfilling previous orders, and there are few new industrial orders. Currently, the prevailing factory prices have dropped by 10–20 yuan, to between 1340 and 1360 yuan ； Composite fertilizer factories in Shanxi Province face difficulties in selling their products outside the region; sales are mainly focused on the local market. It is somewhat challenging for these manufacturers to get their products sold, and the standard export price has dropped to around 1280 yuan. Those manufacturers whose prices are above 1300 yuan are also considering reducing their prices ； Anhui manufacturers have few orders left to fulfill; the standard export prices have dropped to 1380–1420 yuan, while sales of high-end products are poor ； The prevailing ex-factory prices of urea in Jiangsu have dropped by 10-20 yuan, now standing at 1,440-1,450 yuan ； The market conditions in the northwest, southwest, and northeast are generally stable,... (the omitted parts can be found in the member area; the same applies below). Internationally, …… Overall, the volume of Chinese goods in Indian tenders is low, resulting in little impact on the domestic market. Industrial demand remains weak at present, and agricultural demand in regions such as Central and South China has not yet picked up. It is expected that there will still be some downward pressure until mid-May; thereafter, there will be a new wave of purchases by industrial plywood factories, as well as increased demand for raw materials used in summer fertilizer production and for base fertilizers for crops like rice and corn. At that time, urea prices might see a slight increase. 　　Regional market conditions: Unit: yuan/ton (in the table, bold text indicates large-particle urea) http://www.nmtech.com.cn/sys/sec_zxwz.jpg

Urea prices stabilize during holiday, with slight local declines Author/Source: China Business Network Date: 2016-05-04 Clicks: 6 On May 3, during the May Day holiday, the domestic urea market was generally weak, with slight price drops in some areas. Factory price cuts to attract orders have introduced a game-theoretic mentality into the market. Distributors are making purchases cautiously, feeling somewhat helpless about the practice of buying on dips. It is also understood that maintenance work by enterprises in major urea-producing regions such as Henan, Hebei, Shanxi, and Shandong remains inevitable. There has been no surplus in short-term market supply and demand. Currently, the price for low-end products exported from Shanxi has dropped to 1,250 yuan per ton ； Low-end export price in Henan: 1,300 yuan per ton ； The domestic price in Hebei has dropped to 1,280 yuan per ton; some traders have inquired about prices ； Regarding the price cuts in Shandong, the factories are somewhat in a passive position. In India’s first round of tenders, 690,000 tons have been sold, of which 180,000–200,000 tons is likely to come from China, mostly being stock that has been in ports for about half a year. There is still a possibility of further tenders in India in the near future. Domestic demand for high-nitrogen fertilizers in the industrial sector has seen a slight increase, while purchases in the rubber sheet industry remain stable. Short-term domestic prices are expected to remain stable. 　　Today’s market conditions for urea in certain regions: Urea producers in Shandong are offering prices of 1320–1360 yuan per ton, with prices remaining stable; in the agricultural sector, the price is 1310–1340 yuan per ton. Local sales are average, with some products shipped externally. Industrial compound fertilizer manufacturers within the province are stockpiling an appropriate amount of high-nitrogen fertilizers for later use; the purchase price in Linyi is around 1,370 yuan per ton. The port side is in a negative mood, and cargo collection has temporarily come to a halt. 　　The ex-factory price of small-grain urea in Hebei is 1,280–1,300 yuan per ton, and the actual transaction price is also 1,280–1,300 yuan per ton. Purchases are mainly by enterprises in the industrial compound fertilizer and rubber sheet sectors; the agricultural market is currently weak. The wholesale price within the province is 1,330 yuan per ton, with moderate sales volume. 　　Urea prices in Henan have seen slight fluctuations; the price for small-grained urea is 1360–1380 yuan per ton. Demand from downstream industries is moderate, resulting in limited new orders. In the agricultural sector within the province, the price is 1340–1360 yuan per ton, while industrial use of compound fertilizers requires a price of 1340 yuan per ton. The manufacturer’s ex-plant price is 1,300 yuan per ton. 　　The price at the stations in Shanxi for small-grained urea is 1,280 yuan per ton, with prices remaining stable for now; the price for large-grained urea at these stations is 1,320 yuan per ton. Overall, sales are mainly done through external distribution; the price for low-end products is 1250–1280 yuan per ton ； Domestic sales are average; the price for local sales is 1,280 yuan per ton, and the price is negotiable. 　　The urea market in Jiangsu remains stable; mainstream quotes from enterprises in southern Jiangsu are 1,450 yuan per ton, with actual transaction prices subject to negotiation ； The price in northern Jiangsu is 1,430 yuan per ton. The situation regarding shipments to other areas is average; demand within the province is somewhat weak, with some shipments going to external regions. 　　Urea prices in Liaoning remain stable for now; market sales are average. Demand from the agricultural sector remains uncertain at present. The export price for small-grained urea is 1,380 yuan per ton by rail, while the price by road transport is 1,450 yuan per ton. The arrival volume of urea from other provinces is moderate, with the price at the port being 1450–1480 yuan per ton.

There is a risk of price declines for diammonium in the later period. Author/Source: China Business Network. Date: May 4, 2016. Clicks: 6. On May 3, domestic demand for diammonium entered a low season, with market transactions coming to a near halt. Most companies have completed the phase of large-scale shipments and are now focusing on small-scale restocking. Production activity has declined due to weakening domestic demand, with many companies reducing output or undergoing maintenance. On the international front, although there is some demand, foreign buyers are putting significant pressure to lower prices, leading to deadlocks in negotiations. Some diammonium phosphate shipments from certain ports have been redirected to the domestic market. It is reported that 64% of the diammonium phosphate shipments that returned to ports in Shandong were sold at prices ranging from 2,500 to 2,550 yuan per ton. Some manufacturers of diammonium phosphate, under pressure due to their own inventory levels, are exporting goods on a piece-rate basis; however, the prices for new orders remain above $340 FOB. So far, no export orders for diammonium phosphate at a price below $340 per ton have been recorded. 　　Future outlook: There is steady demand in the international diammonium phosphate market, and domestic diammonium phosphate manufacturers have a strong inclination to raise export prices. A price of 340 dollars per ton FOB may be maintained for some time, but given the current operating rates of these manufacturers, there is still considerable pressure to sell, which poses a risk of price declines in the future. Recent market focus remains on exports and corporate production levels.

Weak trading in the monoammonium market Author/Source: China Business Network Date: 2016-05-04 Clicks: 6 On May 3, the monoammonium market continued to show a trend of stability at low levels from the period before holidays. Demand was weak during this off-season, and there was little demand from downstream industries. Companies encountered difficulties in securing new orders; only a few firms had a small number of pre-sale orders, mainly aimed at ensuring minimum sales volume. A handful of companies still had orders that would last until around mid-May. Some companies have completed settlement with their distributors, with most using a buyout price. Business operations are generally steady, with some manufacturers indicating that they will have maintenance plans or reduce production based on market conditions. Currently, the prevailing transaction price for 55% purity powder is 1,750–1,800 yuan per ton; for some lower-quality grades, it is 1,680–1,720 yuan per ton. The price for 58% purity powder ranges from 1,850 to 1,950 yuan per ton. 　　Future market forecast: Monoammonium phosphate is in a slow sales period, with few transactions taking place; settlement prices are being determined one after another, remaining at the same level as previous quotes or slightly lower ； The international market is weak, prices are falling, and export companies tend to wait and see, with few new orders being placed. In the short term, the monoammonium market is operating weakly, with prices remaining at low levels.

The domestic market has largely come to an end; prices for diammonium phosphate remain weak. **Author/Source: Date: 2016-05-04 Clicks: 2 http://www.nzdb.com.cn/Portals/article/1457/201605/32_20160504100559_w78ol.png** Last week (April 25–April 29), the spring fertilization season in China’s diammonium phosphate market was essentially over, with prices remaining weak. On May 2, China’s Phosphoric Acid Diammonium Wholesale Price Index (CPPI) was 2,771.93 points, up 3.88 points on a month-on-month basis, representing a growth rate of 0.14% ； A decrease of 249.58 points on a year-on-year basis, representing a decline of 8.26% ； It dropped by 449.84 points from the base period, representing a decline of 13.96%. On May 2, China’s Phosphoric Acid Diammonium Retail Price Index (CPRI) was 2945.83 points, down by 7.12 points on a month-on-month basis, representing a decline of 0.24% ； It dropped by 429.09 points from the base period, representing a decline of 12.71%. 　　http://www.nzdb.com.cn/Portals/article/1457/201605/32_20160504100525_pq1hk.png Supply situation: Last week, most domestic diammonium phosphate manufacturers ended the phase of large-scale shipments and were mainly engaged in small-scale restocking. The domestic market has essentially entered a off-season, and companies are gradually shifting their focus to the export market. International market prices remain low, reducing companies’ enthusiasm to gather goods at ports; most prefer to wait and see, while inventory pressures are beginning to emerge in certain areas. There is limited upward pressure on the prices of raw materials such as sulfur and phosphate rock, so prices remain stable overall; thus, costs exert only limited support on the price of diammonium phosphate. The enterprise operating rate is around 53%, down 2% on a week-on-week basis. 　　Demand situation: Last week, domestic demand weakened further, with only sporadic purchasing demands remaining in some areas. International demand remains stable, with countries such as India, Pakistan, and Bangladesh successively placing orders with our country; however, the bid prices are low, so companies are cautious about taking on new orders, resulting in limited new contracts being secured. 　　International market: The international diammonium phosphate market is under pressure, while prices of diammonium phosphate in China remain strong. As of last Friday, the FOB price in Port Tampa, USA, was $351 per ton; compared to the previous week, it decreased by $8 per ton for the lower end and by $10 per ton for the higher end ； The FOB price in Tunisia is $361–371 per ton, remaining stable ； The FOB price in Morocco is $346–351 per ton, with a decrease of $7 per ton at the lower end and $30 per ton at the higher end ； The Baltic FOB price remains stable at $311–346 per ton ； China’s FOB price is $333–341 per ton, with an increase of $2 per ton at the lower end and stability at the higher end. 　　Domestic market: According to data monitored by the association, last week prices of diammonium phosphate increased in most of the 21 provinces under observation, with fewer cases of price drops. Among them, with Hubei showing a slight decline of 0.4%, prices in six provinces—Hebei, Anhui, Henan, Yunnan, Gansu, and Xinjiang—all increased, with the increase ranges from 0.4% to 4.5%. Yunnan had the highest increase, while Hebei had the lowest ； Prices in the remaining provinces remained stable. 　　Currently, the domestic market has largely entered a off-season for purchases, putting increasing sales pressure on companies. International market demand has increased, but importers are putting significant pressure on the prices of China’s diammonium exports, making it difficult to maintain stability in the market. It is expected that the diammonium market will remain weak and stable in the short term, with little increase in export prices; attention should be paid to developments in the export market in the future.

Domestic compound fertilizer price market trends. Author/Source: Date: 2016-05-05. Clicks: 3. This daily report on domestic compound fertilizer prices shows that, according to the latest market data from Yuege Fertilizer Network, the price of 45% sulfur-based compound fertilizers is between 2200–2300 yuan per ton, while 45% chlorine-based compound fertilizers cost between 1850–2050 yuan per ton. The prices for corn fertilizers with formulations of 28-6-6 and 30-5-5 are around 1600 yuan per ton. Currently, there are policies in place that allow for payment to secure replenishment of these fertilizers. The market trend for compound fertilizers in Hunan is relatively optimistic; driven by the demand for fertilizers for economic crops in spring, there has been an increase in purchases by end-users as needed, with prices remaining at moderate levels. 　　The compound fertilizer market in Shandong remains relatively sluggish; the price of urea is unstable, which for now has no impact on the compound fertilizer market. External shipments by the enterprise have decreased; some facilities are undergoing seasonal maintenance, as the enterprise prepares for summer fertilizer production. The transaction prices in the compound fertilizer market in Hebei region remain stable for now; there are orders for reordering supplies of certain field crops, while demand for fertilizers for greenhouses and cash crops is moderate. 　　Hualu Hengsheng’s factory price is 2,800 yuan per ton, with a total nutrient content of 45%. Luxi Chemical’s factory price is 2,260 yuan per ton, also with a total nutrient content of 45%. Jindong Agro’s factory price is 2,380 yuan per ton, again with a total nutrient content of 45%. Zibo Bofeng’s factory price is 2,120 yuan per ton, with a total nutrient content of 45%. Jiangsu Hengsheng’s factory price is 2,150 yuan per ton, with a total nutrient content of 45%. Huachang Chemical’s factory price is 2,150 yuan per ton, likewise with a total nutrient content of 45%. Sanchang Chemical’s factory price is 2,260 yuan per ton, with a total nutrient content of 45%.

Early Morning Report on the Factory Export Price of Monoammonium Nitrate. Author/Source: Date: 2016-05-05. Clicks: 3. The price of monoammonium nitrate at Hubei Zhongfu Chemical remains stable; the factory export prices are as follows: 60-grade powder at 2000 yuan/ton, 59-grade powder at 1950 yuan/ton, and 58-grade powder at 1900 yuan/ton. Negotiation is possible for transactions； Industrial-grade 73 nutrients: 3,700 yuan/ton (including 17% tax). The plant has a production capacity of 50,000 tons per year, with a daily output of around 600 tons. It mainly produces 58 powder, 59 powder, and 60 powder; currently, it focuses on the production of 60 powder, and the plant is operating normally. 　　Production of ammonium sulfate in central Hubei is stable; the manufacturers are operating normally, the production facilities are functioning properly, inventory levels are good, and orders are being accepted as usual. Currently, the price of monoammonium phosphate is 1,800 yuan per ton. 　　The price of Chongqing Huaqiang Yiammonium remains stable ； The factory price for Grade 55 powder is 1,700–1,750 yuan per ton; the price is lower when shipped to other provinces, and prices vary depending on the region. Transactions are generally settled on a case-by-case basis through negotiation. The plant’s installation has a daily production capacity of 300 tons, but currently it produces 100–200 tons per day. 　　The price of Jiangsu Ruihe Monoammonium remains stable: the ex-plant price for 55% powder is 1,730 yuan per ton in cash terms, and 1,760 yuan per ton under acceptance terms; actual prices are determined through negotiation. The plant’s annual production capacity is 200,000 tons, with a daily capacity of 800 tons; under normal operations the daily output is 600–700 tons. It is capable of producing grades 55 and 57 in rotation, as well as some quantity reserved for future shipment.