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

Phosphatic Fertilizers: Declining Domestic Demand and Low International Prices Author/Source: Agri-Fertilizer Guide Date: 2016-06-01 Clicks: 2 As domestic demand for monoammonium phosphate in compound fertilizers declines, orders for powdered ammonium phosphate and granular monoammonium phosphate are decreasing； International ammonium prices are low, putting significant export pressure on traders. The market supply of diammonium phosphate has declined slightly, with the overall production rate remaining low. There is still demand for diammonium phosphate in international markets, and domestic companies tend to hold their prices steady, showing little willingness to adjust them. 　　Ammonium sulfate: The domestic market for ammonium sulfate lacks any positive factors supporting its price; sales are slow, downstream demand has declined, and fertilizer manufacturers are not in a hurry to purchase it. The pressure to send orders outside the company is increasing; although there were some advance orders earlier on, the volume of such orders is low. At present, the overall production level of monoammonium is satisfactory; enterprise inventories are increasing, and future orders will mainly be in the form of small orders. According to monitoring, last week the average ex-plant price of 55% powdered monoammonium was 1,670 yuan per ton (the same unit is used hereafter), representing a 0.71% decline on a month-on-month basis ； The average wholesale price of 55% powdered monoammonium is 1,775 yuan, a 0.28% decrease on a month-on-month basis. 　　Diammonium: The diammonium market is operating in a state of consolidation; sales efforts are focused on exports. Since most companies still have export orders, there is little sales pressure in the short term. The domestic market is still in a slow sales period, with only occasional restocking in the North China region. Although companies offer high prices, there is considerable room for negotiation in actual transactions, and prices at the lower end continue to rise. Last week, the average ex-plant price of 64% diammonium fertilizer in the domestic market was around 2,340 yuan, remaining roughly the same as the previous week ； The average wholesale price of diammonium phosphate in the domestic market is 2,600 yuan, down 1.89% from the previous week. As of now, the ex-plant price of 64% diammonium phosphate in Hubei, the main production area, is between 2,300 and 2,350 yuan, while in the Yunnan and Guizhou regions the ex-plant price for 64% diammonium phosphate is 2,350 yuan ； The price of 64% diammonium phosphate upon arrival in Xinjiang is 2,750 yuan; in Gansu, it ranges from 2,700 to 2,800 yuan. In the North China region, the prevailing price upon arrival is 2,400 to 2,450 yuan, while the market in the Northeast has largely come to an end. 　　At the same time, falling raw material prices fail to support the costs of diammonium fertilizer manufacturers ； Pessimism in the market remains strong, and buyers are cautious. 　　Internationally, the prices of monoammonium and diammonium fertilizers remained relatively stable last week. The FOB price for monoammonium phosphate in the Baltic Sea region is $341–$344, while the FOB price in Morocco is $347–$350 ； FOB Brazil: $348–$356. Mexican company Fertinal/AFT will sell 36,000 tons of monoammonium phosphate, diammonium phosphate, and triple superphosphate to Chile. Shipment is scheduled for June 15–20. The expected FOB price for diammonium phosphate is $345 per ton, which is $3 higher than that of monoammonium phosphate. The FOB price for triple superphosphate is expected to be around $290 per ton. 　　Recent heavy rains have delayed Argentina’s wheat harvest, but it is too late to import phosphate fertilizers now; the upcoming soybean planting season will require monoammonium and diammonium fertilizers, and importers are assessing farmers’ purchasing power.

Phosphate rock: Poor actual transaction volume. Author/Source: Date: June 1, 2016. Click-through rate: 2. The phosphate rock market in Hubei Province continues to show a sluggish trend; demand has declined, resulting in poor actual transaction volumes. In terms of price: The phosphorus mines operated by Hubei Yihua Group are functioning normally, and prices have seen a slight decline; the delivery price for phosphorus ore with a 28% purity level is around 360 yuan per ton. The annual production is 3 million tons; the ore is used internally and not exported. Manufacturers prioritize orders from previous periods and existing customers, resulting in slow progress on new orders. It is expected that the phosphate rock market in Hubei region will remain weak in the short term. 　　Hubei Yichang Mingzhu Phosphorus Chemicals supplies phosphorus ore of 28% quality; the phosphorus mines produce around 1,000 tons per day, and the manufacturer mainly supplies goods within the province, with moderate levels of shipment. The latest price for 28% quality phosphatic ammonium rock ship plates is 370 yuan per ton; there is little room for negotiation regarding pricing, and orders are accepted as usual. 　　The phosphate rock market in Yunnan region remains in a state of stability; demand is low, transactions are modest, and companies tend to adopt a wait-and-see attitude. There are few new orders, with companies focusing on fulfilling existing orders. Manufacturers mostly use it for their own needs, with a small amount sold in the surrounding areas. Trading activity in the downstream monoammonium market is weak, while the trend in the diammonium market remains stable. In terms of price: The phosphorus ore deposits in Yunnan Zhonghua Yunlong are being mined as usual, but the output is insufficient for internal use, so it is necessary to purchase ore from outside. The monthly mining volume is 20,000 tons, and prices remain stable. The price of phosphorus ore with a purity of 28% at the mine site is 280–300 yuan per ton, while that of phosphorus ore with a purity of 29% is 340–350 yuan per ton. This ore is mainly used for the production of phosphates. The downstream yellow phosphorus market is operating in a weak condition; some companies have postponed their production plans. The phosphate fertilizer market remains sluggish, with prices staying low, which results in limited demand for phosphate rock purchases. In the short term, the Yunnan phosphate rock market is expected to remain **stable, with little upward momentum in prices. 　　The phosphate mines of Yunnan Phosphorus Group are operating at full capacity; it is reported that the execution price for phosphate ammonium rock of 28.5% quality, shipped under contracts outside the province, is 300–320 yuan per ton. Shipments of 26.5% phosphorus yellow ore were average, with the ex-plant price remaining stable at 290 yuan per ton. Currently, orders are mainly supplied to internal group members and existing customers; orders from certain existing customers outside the province are not quoted at this time. 　　The phosphorus ore market in Sichuan is operating steadily, with no significant changes in prices; demand is low and actual sales performance is poor. In terms of price: The phosphate ore mines in Leibo, Sichuan are operating normally, with an annual production capacity of 100,000 tons and a daily output of 500 tons. The price at the mine site, including taxes, is 110 yuan per ton for ore with a 23% purity level, 130 yuan per ton for ore with a 24% purity level, 145 yuan per ton for ore with a 25% purity level, 155 yuan per ton for ore with a 26% purity level, 190 yuan per ton for ore with a 27% purity level, and 220 yuan per ton for ore with a 28% purity level. It is expected that the market for phosphate ore in Sichuan will remain sluggish in the short term, with no significant improvement expected. 　　Sichuan Tianrui Mining supplies phosphorus ore of 26%-28% quality; a flotation phosphorus concentrate plant with an annual design capacity of 1.2 million tons began operating normally in June, and at present the raw ore is mainly supplied within the province. The delivery price for raw phosphate rock with a quality of 28% at the county town is 240 yuan per ton; the price for raw rock with a quality of 27% is 220 yuan per ton. Negotiations are preferred, and prices are determined on a case-by-case basis. 　　The phosphate rock market in Guizhou remains stable. In terms of prices: The phosphate mines in Fuquan, Guizhou, are operating normally, with an annual production capacity of 1.5 million tons and a daily output of around 1,800 tons. The price of ore with a 22% purity at the mine site is 150 yuan per ton; ore with a 26% purity at the freight yard near Machangping Railway Station costs 250 yuan per ton. Ore with a 28% purity (black ore) at the same freight yard has a price of 285 yuan per ton, while ore of this purity delivered to Yichang costs 390 yuan per ton. Ore with a 30% purity (black ore) costs 345 yuan per ton at the Machangping Railway Station freight yard, and its price when delivered to Yichang is around 440 yuan per ton. The ore is mainly sold in the surrounding areas. The Guizhou phosphate rock market is expected to remain sluggish in the short term. 　　Guizhou Xinxin Group supplies 30% of the high-quality phosphate ore. At present, the operating rate of phosphate mines is around 75%, with a daily production of 4,000 tons. The company’s sales volume is moderate; it mainly supplies its existing customers in areas such as Fuling, Chongqing, and its pricing remains stable. The quote for 30% quality raw ore slabs remains steady at 400 yuan per ton; this is on the high side. The actual negotiated price for such slabs is 350 yuan per ton, with prices to be determined on a case-by-case basis. There is currently no news regarding the specific plan for the reform of the resource tax. (China Agri-Media Network)

Phosphorus ore: Little change in prices. Author/Source: Date: 2016-05-31. Clicks: 11. The phosphorus ore market in Guizhou remains stable. In terms of prices, the Fuchuan phosphate mines in Guizhou are operating normally, with an annual production capacity of 1.5 million tons and a daily output of around 1,800 tons. Ore with a 22% purity is sold at 150 yuan per ton at the mine site; ore with a 26% purity is priced at 250 yuan per ton at the freight yard near Machangping Railway Station. Ore with a 28% purity (black ore) is sold at 285 yuan per ton at the same freight yard, while ore of this purity delivered to Yichang costs 390 yuan per ton. Ore with a 30% purity (black ore) is priced at 345 yuan per ton at Machangping Railway Station, and its cost when delivered to Yichang is around 440 yuan per ton. The ore is mainly sold in the surrounding areas. The Guizhou phosphate rock market is expected to remain sluggish in the short term. 　　Guizhou Xinxin Group supplies 30% of the high-quality phosphate ore. At present, the operating rate of phosphate mines is around 75%, with a daily production of 4,000 tons. The company’s sales volume is moderate; it mainly supplies its existing customers in areas such as Fuling, Chongqing, and its pricing remains stable. The quote for 30% quality raw ore slabs remains steady at 400 yuan per ton; this is on the high side. The actual negotiated price for such slabs is 350 yuan per ton, with prices to be determined on a case-by-case basis. There is currently no news regarding the specific plan for the reform of the resource tax. 　　The phosphorus ore market in Sichuan is operating steadily, with no significant changes in prices; demand is low and actual sales performance is poor. In terms of price: The phosphate ore mines in Leibo, Sichuan are operating normally, with an annual production capacity of 100,000 tons and a daily output of 500 tons. The price at the mine site, including taxes, is 110 yuan per ton for ore with a 23% purity level, 130 yuan per ton for ore with a 24% purity level, 145 yuan per ton for ore with a 25% purity level, 155 yuan per ton for ore with a 26% purity level, 190 yuan per ton for ore with a 27% purity level, and 220 yuan per ton for ore with a 28% purity level. It is expected that the market for phosphate ore in Sichuan will remain sluggish in the short term, with no significant improvement expected. 　　Sichuan Tianrui Mining supplies phosphorus ore of 26%-28% quality; a flotation phosphorus concentrate plant with an annual design capacity of 1.2 million tons began operating normally in June, and at present the raw ore is mainly supplied within the province. The delivery price for raw phosphate rock with a quality of 28% at the county town is 240 yuan per ton; the price for raw rock with a quality of 27% is 220 yuan per ton. Negotiations are preferred, and prices are determined on a case-by-case basis. (China Agri-Media Network)

Phosphorus ore: Weak market conditions, modest sales. Author/Source: Date: 2016-06-02. Clicks: 3. The phosphorus ore market in Yunnan remains stable, with weak market conditions and modest sales; companies tend to adopt a wait-and-see attitude, with few new orders, focusing instead on fulfilling previous orders. Manufacturers mostly use it for their own needs, with a small amount sold in the surrounding areas. Trading activity in the downstream monoammonium market is weak, while the trend in the diammonium market remains stable. In terms of price: The phosphorus ore deposits in Yunnan Zhonghua Yunlong are being mined as usual, but the output is insufficient for internal use, so it is necessary to purchase ore from outside. The monthly mining volume is 20,000 tons, and prices remain stable. The price of phosphorus ore with a purity of 28% at the mine site is 280–300 yuan per ton, while that of phosphorus ore with a purity of 29% is 340–350 yuan per ton. This ore is mainly used for the production of phosphates. The downstream yellow phosphorus market is operating in a weak condition; some companies have postponed their production plans. The phosphate fertilizer market remains sluggish, with prices staying low, which results in limited demand for phosphate rock purchases. In the short term, the Yunnan phosphate rock market is expected to remain **stable, with little upward momentum in prices. 　　The phosphate mines of Yunnan Phosphorus Group are operating at full capacity; it is reported that the execution price for phosphate ammonium rock of 28.5% quality, shipped under contracts outside the province, is 300–320 yuan per ton. Shipments of 26.5% phosphorus yellow ore were average, with the ex-plant price remaining stable at 290 yuan per ton. Currently, orders are mainly supplied to internal group members and existing customers; orders from certain existing customers outside the province are not quoted at this time. 　　The phosphate rock market in Hubei region remains sluggish, with a shrinking demand market and poor actual transaction volumes. In terms of price: The phosphorus mines operated by Hubei Yihua Group are functioning normally, and prices have seen a slight decline; the delivery price for phosphorus ore with a 28% purity level is around 360 yuan per ton. The annual production is 3 million tons; the ore is used internally and not exported. Manufacturers prioritize orders from previous periods and existing customers, resulting in slow progress on new orders. It is expected that the phosphate rock market in Hubei region will remain weak in the short term. 　　Hubei Yichang Mingzhu Phosphorus Chemicals supplies phosphorus ore of 28% quality; the phosphorus mines produce around 1,000 tons per day, and the manufacturer mainly supplies goods within the province, with moderate levels of shipment. The latest price for 28% quality phosphatic ammonium rock ship plates is 370 yuan per ton; there is little room for negotiation regarding pricing, and orders are accepted as usual. 　　The phosphorus ore market in Sichuan is operating steadily, with no significant changes in prices; demand is low and actual sales performance is poor. In terms of price: The phosphate ore mines in Leibo, Sichuan are operating normally, with an annual production capacity of 100,000 tons and a daily output of 500 tons. The price at the mine site, including taxes, is 110 yuan per ton for ore with a 23% purity level, 130 yuan per ton for ore with a 24% purity level, 145 yuan per ton for ore with a 25% purity level, 155 yuan per ton for ore with a 26% purity level, 190 yuan per ton for ore with a 27% purity level, and 220 yuan per ton for ore with a 28% purity level. It is expected that the market for phosphate ore in Sichuan will remain sluggish in the short term, with no significant improvement expected. 　　The Wufeng phosphate mine in Mabian, Sichuan is operating normally, with an annual production capacity of 500,000 tons and a daily output of over 1,000 tons. The delivery price (including taxes) for phosphate ore with a purity of 26% in Mabian town is 200 yuan per ton, while the price for phosphate ore with a purity of 27% is 220 yuan per ton. Sales are proceeding as usual. 　　The phosphate rock market in Guizhou remains stable. In terms of prices: The phosphate mines in Fuquan, Guizhou, are operating normally, with an annual production capacity of 1.5 million tons and a daily output of around 1,800 tons. The price of ore with a 22% purity at the mine site is 150 yuan per ton; ore with a 26% purity at the freight yard near Machangping Railway Station costs 250 yuan per ton. Ore with a 28% purity (black ore) at the same freight yard has a price of 285 yuan per ton, while ore of this purity delivered to Yichang costs 390 yuan per ton. Ore with a 30% purity (black ore) costs 345 yuan per ton at the Machangping Railway Station freight yard, and its price when delivered to Yichang is around 440 yuan per ton. The ore is mainly sold in the surrounding areas. The Guizhou phosphate rock market is expected to remain sluggish in the short term. 　　The Shuanglong phosphate mine in Guizhou is operating normally, with an annual production capacity of 250,000 tons and a monthly output of around 15,000 tons. Currently, the price per ton for phosphate ore with a purity of 30% (including taxes) is 400 yuan/ton, while the price for yellow phosphorus ore (including taxes) is 450 yuan/ton. Sales are going well, with orders mainly coming from existing customers, and new orders can be accepted as usual. (China Agri-Media Network)

During the 13th Five-Year Plan period, 3 million tons of outdated production capacity in the phosphorus compound fertilizer sector is to be phased out. Author/Source: Date: 2016-06-02 Clicks: 14. From May 27th to 28th, the 23rd National Annual Conference on the Phosphorus Compound Fertilizer Industry was held in Beijing. At the meeting, the “13th Five-Year Development Guidelines for the Phosphate and Compound Fertilizer Industry” was officially released, outlining specific goals for capacity reduction and structural adjustment. The specific goal is to keep the total production capacity of phosphorus-based compound fertilizers at around 22 million tons by 2020, by phasing out 3 million tons of production capacity; meanwhile, the annual average utilization rate for high-concentration phosphorus-based compound fertilizer varieties (excluding blended and mixed fertilizers) should reach 80% ； The efficiency of resource and energy utilization is steadily improving, and the quality and effectiveness of industry development have been significantly enhanced ； Break through a number of key common technologies that constrain the development of the industry and achieve their industrialization ； The entire industry achieves safe production, with environmental protection standards further improved. Zhou Zhuye, vice president of the China Petroleum and Chemical Industry Federation and chairman of the China Phosphate and Compound Fertilizer Industry Association, pointed out that the challenges facing the industry at present are extremely severe. First, the growth rate of demand for traditional phosphorus-based compound fertilizers is declining. In 2015, the apparent consumption of such fertilizers in China was 12.45 million tons, and it is unlikely that consumption will exceed 13.5 million tons by 2020. Second, the problem of overcapacity remains prominent, and structural adjustment as well as transformation and upgrading face significant challenges. Third, the role of traditional distribution channels as a reservoir is weakening, resulting in increasing operational risks and pressures for manufacturing enterprises. Fourth, resource and environmental constraints are becoming increasingly stringent. The pressure arising from requirements related to safe production, environmental protection, and efficient use of resources and energy forces enterprises to pursue a path of green and sustainable development, which in turn requires greater investment. Meanwhile, on an international scale, new phosphate fertilizer production capacity in regions such as North Africa and West Asia is set to be brought online in the coming years, which will lead to significant changes in the global pattern of phosphate fertilizer production and trade. As a result, China’s international competitiveness in phosphate fertilizers will further decline. “Under these circumstances, the phosphate fertilizer industry must focus closely on the goal of improving quality and efficiency, taking the elimination of outdated technologies, independent innovation, green and low-carbon practices, as well as safe production as key strategies, in order to accelerate supply-side reforms and achieve the upgrading of the industry. It is necessary to foster technology-innovative model enterprises across the industry, strive to establish key industry technology innovation platforms, and focus on cultivating innovative leadership talents. Structural adjustments should be made under the theme of \"weight reduction and quality improvement, as well as ecological efficiency,\" in line with the shift toward a modernized agricultural development model, while strengthening energy conservation, emission reduction, and safety management. ”said Xiu Xuefeng, vice chairman of the China Phosphate and Compound Fertilizer Industry Association. Lei Wen, head of the Environmental Protection Section in the Department of Energy Conservation and Comprehensive Utilization under the Ministry of Industry and Information Technology, said that in the context of clean production in the phosphate fertilizer industry during the 13th Five-Year Plan period, emphasis should be placed on \"three major transformations\": namely, shifting the approach to clean production from improving it in specific areas or along certain lines to achieving comprehensive improvement across the board ； Achieve a shift from focusing on the control of conventional pollutants to also addressing the substitution of toxic and harmful raw materials (products) ； Achieve a shift from pollution prevention and control during the production process to pollution prevention and control throughout the entire life cycle. Lei Wen revealed that the Ministry of Industry and Information Technology hopes to, through 2–3 years of pilot programs, establish 1–2 model enterprises in each industry, explore the development of evaluation systems for different industries and products, and ultimately achieve the goal of creating 100 model enterprises for ecological (green) design. The China Phosphorus Fertilizer Industry Association completed its leadership transition. The annual meeting of the phosphorus fertilizer industry saw the holding of the 7th member assembly of the China Phosphorus Fertilizer Industry Association; 112 new members were elected to the board of directors, including Zhou Zhuye, who was chosen as the president of the 7th board. Zhang Jianqiu, deputy editor-in-chief of the China Chemical Industry News, along with 25 others, served as vice presidents, while Li Guang was appointed as the secretary-general of the new board. The meeting reviewed and approved the new association charter. Zhou Zhuye said that this year, the entire industry will focus on carrying out the following tasks: first, making efforts to address overcapacity ； Second, vigorously promote independent innovation ； Third, deeply advance the integration of industry and information technology to comprehensively promote green development ； Fourth, leverage the Belt and Road Initiative to expand into international markets and enhance the industry’s international competitiveness and influence ； Fifth, accelerate the transformation of business concepts and improve the level of agrochemical services ； Sixth, it is necessary to strengthen the development of the association itself, adhere to standardized operations, and strive to improve the level of services provided. Link: Key Points for Industry Development during the 13th Five-Year Plan Period In terms of structural adjustment, the external dependence on sulfur resources decreased by 10 percentage points, while the grade of phosphate ores used declined by 2–4 percentage points ； Fertilizer utilization efficiency increases by 3–5 percentage points, and the production capacity of wet-process purified phosphate rises to 2 million tons. 　　In terms of industrial transformation and upgrading, efforts are being made to improve and advance the production processes of wet phosphoric acid using the semi-aqueous method, the semi-aqueous–dihydrate method, and the dihydrate–semi-aqueous method, as well as to expand their application scope ； The fluorine recovery rate across the entire industry increases by 10 percentage points ； Focus on developing new types of fertilizer products to significantly improve fertilizer utilization efficiency. In terms of green and sustainable development, technologies for the harmless treatment and reuse of phosphogypsum have been developed and promoted, achieving a comprehensive utilization rate of 40% for phosphogypsum ； Ensure that all emissions of the three types of waste meet the required standards, and that all enterprises comply with **clean production requirements ； All phosphatic ammonium production enterprises meet the requirements for access.

Demand for compound fertilizers slows down temporarily Author/Source: China Business Network Date: 2016-06-03 Clicks: 9 On June 2, demand for compound fertilizers declined significantly, with reduced transaction volumes at the downstream level. The preparation of fertilizers for corn farming is approaching its end, with only limited demand for fertilizers in some specific areas. Due to the unstable prices of raw materials, especially the downward trend in urea prices, downstream distributors of compound fertilizers lack confidence in future market conditions and thus limit their purchases. Coupled with the large amount of stock accumulated in the earlier period, the digestion of inventory is slow, which results in low enthusiasm for purchasing in recent times. The prevailing factory prices for compound fertilizers remain relatively stable: 45%(15-15-15) costs between 2200–2300 yuan per ton, while 45%(15-15-15) is priced at 1850–2050 yuan per ton. The prices for corn fertilizers with compositions of 28-6-6 and 30-5-5 are around 1600 yuan per ton. Currently, there are policies in place that allow payment to be made in order to replenish stock. Orders for compound fertilizers in Anhui region are being fulfilled steadily, at a somewhat slower pace; the overall timing for preparing fertilizers has been delayed, and the average operating rate of enterprises’ production facilities is lower than in the same period in previous years. In the Hunan region, the compound fertilizer market is characterized by orders for a small number of cash crops, with a sales model that allows for purchases as needed; orders for field crops are relatively few. The compound fertilizer market in Shanxi is weak; the decline in urea prices has made downstream traders even less willing to purchase goods, leading to another delay in fertilizer procurement for the summer. 　　Future market forecast: As we enter June in the compound fertilizer market, companies shift their focus to the wheat fertilization market. Given that sales performance in the corn fertilization market is generally unsatisfactory, it is expected that some companies will prepare in advance for the autumn wheat fertilization market or introduce certain payment policies. It is expected that there will be no significant changes in the prices of compound fertilizers for the time being, with companies focusing on leveraging policies to their advantage. (Yang Luyi)

Compound fertilizers: Falling prices undermine confidence. Author/Source: China Agri-inputs Herald. Date: June 3, 2016. Click-through rate: 2. In June, sales of compound fertilizers enter the off-season. Market demand has plummeted; only a limited amount of fertilizer is expected to be restocked for crops such as corn and rice. Raw material prices continue to decline, and the cost of compound fertilizers lacks support, resulting in price drops of 50–100 yuan per ton (the same applies below). Further price drops have hit the already sluggish market, setting the stage for the autumn market as well. 　　Weakening demand is dragging down market prices. North China is gradually entering the wheat harvesting season, and the use of fertilizers in summer is approaching. The retail sales of compound fertilizers have reached their final stage, with market sales essentially coming to an end. As demand weakens and inventory takes longer to clear, more companies suspend production for maintenance, further driving down the overall operational rate of facilities. Since May, the summer market has shown weakness in both demand and prices. There are various reasons: affected by raw materials, the prices of compound fertilizers have shown a slow downward trend in spring, and market confidence is low. The reform of the corn procurement and storage policy has dampened farmers’ enthusiasm for growing corn. As a result, the demand for fertilizers for summer-planted corn has been delayed and reduced; the downward trend in prices seems inevitable. 　　Weak raw materials have led to price drops. Since May, the prices of upstream raw materials have continued to decline, failing to support the costs of compound fertilizers. By early June, this situation continued to deteriorate, leading to a decline in the prices of compound fertilizers. Urea is showing a downward trend with fluctuations; the prevailing transaction price in Shandong is around 1,290 yuan ； Potassium chloride is being sold at reduced prices; most domestic potassium fertilizers are distributed through joint sales initiatives. The price of 60% potassium chloride upon arrival at the warehouse is between 1,980 and 2,000 yuan ； The overall market for monoammonium has declined, with transaction prices in the Northeast dropping to 1,680–1,700 yuan. Compared to the same period last year, the decline for each type of raw material is around 400. 　　In terms of competing products, diammonium phosphate continues to show a weak performance. Currently, the ex-factory price of 64% diammonium phosphate in Hubei, the main production area, is between 2300 and 2350 yuan, while the prevailing price upon arrival in North China is between 2400 and 2450 yuan. 　　Prepare actively for the autumn market. As the summer market comes to an end, the operating rate of compound fertilizers will drop further, sales will cease, and manufacturers will focus on providing agrochemical services to maintain their market presence. According to the normal schedule, companies will begin preparing fertilizers for wheat in late June, and the policy regarding payments is expected to be introduced in July. 　　On May 26, international compound fertilizer prices rose slightly in some areas. CIF, bulk 48% compound fertilizer in Southeast Asia: $350–370 ； China’s 48% compound fertilizer: $350–360 ； Indian bulk 62% compound fertilizer (N-P-K 10%-26%-26%) costs $300–315, up by $13. The FOB price for Baltic bulk 48% compound fertilizer is $260–300. (Jiao Peipei)

May 25 – June 1: The phosphate ammonium market remained stable. Author/Source: Date: 2016-06-03. Clicks: 1. Market updates: The diammonium market continued its stable trend from last week. Sales in the domestic market are limited; some companies are fulfilling existing contracts, with few new orders coming in, which further increases sales pressure. Actual transactions are handled on a case-by-case basis or through fixed-price agreements. Most manufacturers have completed settlement for orders received earlier, and the ex-factory price ranges from 2350 to 2380 yuan per ton. The settlement prices with some manufacturers are still under negotiation. In the international diammonium phosphate market, India has seen a slowdown in demand for this product due to extreme heat conditions. Last week, the offshore price of diammonium phosphate in China dropped to $332–340 per ton. Most export companies suspended their exports, stopped providing quotes, and chose to wait and see; thus, there is no sign of improvement in exports for the time being. 　　Demand for monoammonium phosphate continues to decline, putting increased sales pressure on enterprises in the main production areas; sales are limited to small quantities in the surrounding areas, while exports have essentially come to a halt. The raw material market is operating weakly with falling prices, which provides limited support for the costs of monoammonium nitrate ； In the summer, downstream compound fertilizers are mainly high-nitrogen types, resulting in weak purchasing demand. The prevailing transaction price for 55% powder produced by a manufacturer in Hubei is 1,750–1,800 yuan per ton. The mainstream ex-factory price for 55% powder in Henan is 1,700–1,750 yuan per ton. Manufacturers in Sichuan are operating at a steady pace; the local ex-factory price for 55% purity powder is 1,750–1,800 yuan per ton. The mainstream ex-factory price for 55% powder in Jiangsu and Anhui is 1,800 yuan per ton. The enthusiasm for purchasing in the lower reaches of Shandong is moderate; the mainstream ex-warehouse price for 55% powder is around 1,900 yuan per ton. The market in the Northwest region has closed, with production declining; the settlement price for 58% powder is 2,100 yuan per ton. 　　Future outlook: The off-season for domestic demand for diammonium nitrogen fertilizers will continue until early July; companies are under significant inventory pressure, and there is still room for a further decline in the ex-plant prices for domestic sales. Export conditions remain poor, and there are no signs of improvement in the diammonium market in the short term; most manufacturers are pessimistic about the export market this year. 　　The off-season for domestic demand is relatively long, and coupled with the ongoing poor conditions in the raw material market, there is insufficient support in terms of costs. Export conditions remain poor, with companies under heavy inventory pressure; demand both domestically and internationally is weak in the short term, and there is a pervasive atmosphere of pessimism in the market. The ammonium nitrate market lacks any positive factors supporting it at present, and it is likely that the trading price of ammonium nitrate will decline in the short term. (China Agri-Media)

Diammonium phosphate: Few positive factors; market remains sluggish. Author/Source: China Business Network. Date: 2016-06-03. Clicks: 6. In the first week of June, the domestic diammonium phosphate market continued to show a sluggish trend; currently, apart from small amounts of demand in Shandong and Hebei, there is little demand in other regions. The operating rate of diammonium enterprises has seen a slight increase, reaching nearly 60%; domestic sales are sluggish, and manufacturers are currently focusing on building up their inventory levels. Currently, in China, the mainstream delivery price for 64% diammonium phosphate is 2,800 yuan per ton in Xinjiang; it ranges from 2,600 to 2,750 yuan per ton in the northwest region, and from 2,650 to 2,800 yuan per ton in the northeast region. In Heilongjiang, the purchase price for some 64% diammonium phosphate is around 2,600 yuan per ton. In Shandong, the mainstream delivery price is 2,500 to 2,550 yuan per ton, while the lower-end prices are 2,400 yuan per ton. In Hubei, the mainstream ex-factory price for 64% diammonium phosphate is 2250–2350 yuan per ton; the price for high-quality products remains at 2450 yuan per ton. Some manufacturers have already completed settlement, with the ex-factory settlement price ranging from 2350 to 2400 yuan per ton. The settlement price upon arrival in the Northeast is 2700 yuan per ton. In Gansu, the mainstream ex-plant price for 64% diammonium phosphate is 2,600 yuan per ton; the settlement price remains roughly at this ex-plant level, while negotiations are still in progress regarding settlement prices in Xinjiang. 　　In the international diammonium phosphate market, FOB prices have generally declined. In the Indian market, demand for diammonium phosphate purchases has slowed down due to ample inventory, while purchases in Pakistan continue at a price of 340–350 dollars per ton. Demand in Brazil is recovering slowly, with prices already falling below $355 per ton. China’s FOB export price is $332–335 per ton. 　　Outlook: The international market remains weak; export conditions are unlikely to improve. Indian procurement demand is slowing down, putting downward pressure on prices. With limited domestic demand and slow sales, companies tend to adopt a wait-and-see approach and order orders cautiously. It is expected that the diammonium phosphate market will remain sluggish in the near term; in the absence of any positive factors, the domestic diammonium phosphate market is likely to continue to decline slightly. (Niu Junmei)

Monoammonium phosphate: Demand remains in off-season; slight price drops in some areas. Author/Source: China Business Network. Date: 2016-06-03. Clicks: 5. In the first week of June, demand for monoammonium phosphate in the domestic market was still in an off-season; aside from slight price reductions in certain areas, most prices remained low. The weak performance of the main raw material markets provides limited support for the costs of monoammonium nitrate ； Currently, the sulfur inventory at China’s main ports is around 1.64 million tons, and there are no signs of improvement in sales. The liquid ammonia market remains stable overall, with slight declines in a few areas. The phosphate rock market remained stable, with weak trading activity. With sulfuric acid prices falling, it is difficult for the market to see any significant changes, and the downward trend is hard to stop. In the summer, downstream compound fertilizers are mainly high-nitrogen types, resulting in weak purchasing demand. Companies in the main production areas face significant sales pressures; they primarily sell their products in the surrounding areas, with exports essentially coming to a halt. Exports of granular ammonium sulfate are not looking promising; international export prices are falling, while domestic companies maintain firm pricing and show little willingness to take orders. 　　Market forecast: The prices of upstream raw materials remain unfavorable, providing little support for monoammonium phosphate. Domestic demand stays weak, procurement of compound fertilizers by downstream users is being delayed, and there are no signs of improvement in export conditions. Some companies face significant inventory pressures; therefore, it is expected that the market for monoammonium phosphate will not see any improvement in the near term, with prices likely to continue to fall. (Niu Junmei)