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

Weekly Review of Phosphorus Ore: Overall **performance. Author/Source: Date: 2016-07-01. Clicks: 1. The domestic phosphorus ore market remained stable this week. Lacking strong fundamental cues, merchants are adopting a wait-and-see attitude toward the future market, resulting in lackluster trading activity. Currently, mining enterprises’ production facilities are operating normally, but downstream companies have weak purchasing demand, resulting in sluggish overall market transaction activity. 　　Phosphorus ore market in the main domestic production areas: The phosphorus ore market in Yunnan remains stable, with weak demand and modest transaction volumes. Companies tend to adopt a wait-and-see attitude, with few new orders; they focus on fulfilling existing orders. Trading started at low levels in the market, with prices moving weakly. In terms of prices: phosphorus ore with a purity of 22%-23% has a delivered price including tax of 230 yuan per ton; the price at the mine site for ore with a purity of 25% (excluding tax) is 300 yuan per ton. The price at the mine site for phosphorus ore with a purity of 28% ranges from 280 to 300 yuan per ton. For ammonium phosphate ore with a purity of 28%, the delivered price outside the province is 345 yuan per ton, while the price within the province is around 290 yuan per ton. The price at the mine site for ore with a purity of 28% (excluding tax) is 390 yuan per ton. The price at the mine site for phosphorus ore with a purity of 29% is 340-350 yuan per ton, and the price at the mine site for ore with a purity of 30% (excluding tax) is 420 yuan per ton. 　　The Guizhou phosphate rock market remains stable, with no price adjustments for the time being. Market activity is weak, with no positive factors to support it at the moment. In terms of prices: currently, the ex-mine price (including tax) for phosphate rock with a grade of 21% is around 130 yuan per ton; for 22% grade phosphate rock, it’s about 150 yuan per ton; for 23% grade phosphate rock, it’s approximately 160 yuan per ton. The price at the Macangping railway freight yard for 26% grade phosphate rock is 250 yuan per ton. For 28% grade phosphate rock (black ore), the price at the same location is 285 yuan per ton. The quoted price at the loading platform in Kaiyang for 28% grade phosphate rock is 370 yuan per ton. The cost of transporting 28% grade phosphate rock to Yichang is around 390 yuan per ton. For 29% grade phosphate rock, the price at the loading platform is 300 yuan per ton; for 30% grade phosphate rock, it’s 310 yuan per ton. The price at the Macangping railway freight yard for 30% grade phosphate rock (black ore) is 345 yuan per ton. The ex-loading-platform price (including tax) for 30% grade phosphate rock is 400 yuan per ton, while the cost of transporting it to Yichang is approximately 440 yuan per ton. 　　The phosphate rock market in Hubei region is operating as usual, with no significant fluctuations in prices; sales remain weak and manufacturers are seeing modest levels of shipments. In terms of price: the price at the mine entrance for phosphate rock with a purity of 20% is 100–110 yuan per ton. The price for phosphate rock with a purity of 28%, delivered on board ships, is around 360–370 yuan per ton. Phosphate rock with a purity of 29% costs 390 yuan per ton, while that with a purity of 30% has a price of around 390 yuan per ton at the mine entrance. The price for phosphate rock with a purity of 30% when delivered on board ships is 420 yuan per ton. The price for phosphate rock with a purity of 28–30%, delivered by truck (including taxes), is 450 yuan per ton. 　　The Sichuan phosphate rock market remained stable in terms of quotes, with prices mostly staying at the previous levels; the market trend was steady. Sales were driven primarily by previous orders and existing customers, while new orders saw poor performance. In terms of price: the price at the mine site, including taxes, is 120 yuan per ton for ore with a purity of 23%, 140 yuan per ton for ore with a purity of 24%, 160 yuan per ton for ore with a purity of 25%, and 180 yuan per ton for ore with a purity of 26%. The price, including taxes, for phosphorus ore with a purity of 26% delivered in Mabian County is 220 yuan per ton, while the price, including taxes, for ore with a purity of 27% delivered in Mabian County is 240 yuan per ton. The price at the mine entrance for phosphorus ore with a 27% purity is around 230 yuan per ton, including taxes. The price at the mine entrance for phosphorus ore with a 28% purity (including taxes) is 260 yuan per ton. The price, including taxes, for phosphorus ore of 28% purity delivered in Mabian County is 285 yuan per ton. For phosphorus ore with a 29% purity, the price, including taxes, upon delivery in Mabian County is 310 yuan per ton. Phosphorus ore with a 30% purity costs 340 yuan per ton, while that with a 32% purity costs 385 yuan per ton. 　　Market outlook: Currently, the domestic phosphate rock market lacks any positive factors to support it, and sales are under pressure. It is unlikely that the market conditions for phosphate rock will improve in the near future; there is still room for price declines in some areas. The downstream markets have low expectations for the future, and distributors are relatively reluctant to purchase phosphate rock. The short-term phosphate rock market has been characterized by consolidation at low levels.

Weekly Review of Compound Fertilizers: Entering the Peak Period for Maintenance During the Off-Season. Author/Source: Date: 2016-07-01. Clicks: 11. Trading in the domestic compound fertilizer market remained sluggish this week. At present, most companies are in a period of maintenance during the off-season. After mid-July, policies related to autumn fertilizers will be introduced one after another; downstream traders are cautious in their purchases and continue to adopt a strategy of purchasing only as needed, resulting in continued slow sales for these companies. Regarding upstream raw materials: the urea market remains weak, with companies across different regions lowering their prices to varying degrees in secret ； The phosphate fertilizer market remains weak; the low prices of DAP have begun to affect the compound fertilizer market. Some traders have started to make small-scale purchases of DAP ； Potash prices are showing weak consolidation, while the prices agreed upon in large-scale potash contracts are 105 dollars lower than in previous years. As a result, autumn quotes for compound fertilizers are bound to decline. The bearish sentiment in the market is intensifying, with downstream players continuing to hold back their funds and wait and see. Recently, attention has been focused on autumn policies and the release of prices for high-phosphorus fertilizers in autumn. 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. 　　In terms of the market: The compound fertilizer market in Jiangsu is relatively weak; trading activity is slow during the off-season, with only a small amount of sales occurring for certain cash crops. Companies are gradually formulating their policies for the autumn season, and there is no intention to adjust prices at this time. The mainstream ex-factory price is around 1,750 yuan per ton for 45%(15-15-15); the price at ex-factory level for 45%(15-15-15) is about 2,200 yuan per ton, showing a clear trend of stability on the surface with underlying declines. The compound fertilizer market in Shandong region is sluggish. The current standard factory prices are as follows: 45%(15-15-15) costs between 1,900 and 2,000 yuan per ton, while 45%(15-15-15) is priced at around 2,200–2,300 yuan per ton. Policies regarding autumn storage will be announced soon; the interest rate applied is 0.1% for amounts below 500,000 yuan and 0.2% for amounts above that, with the interest calculation period ranging from 2 to 3 months. Regular inspections of equipment are carried out, and companies are successively introducing autumn fertilizer preparation policies and prices. Currently, the sources of goods for external shipment have decreased; only a small amount of cash crops are being acquired, and downstream traders do not plan to make payments in advance for now. 　　Future market forecast: As upstream raw material prices continue to decline and phosphatic fertilizer prices remain low, the prices of high-phosphorus fertilizers in autumn are under significant pressure. It is expected that the prices of compound fertilizers in the coming period will move downward.

Weekly Review of Diammonium Phosphate: Companies still face significant shipping pressures. Author/Source: Date: 2016-07-01. Clicks: 9. This week, the domestic diammonium phosphate market showed no signs of improvement, with prices in some areas still likely to decline. Amid a slow season for domestic demand, companies still face considerable pressure to ship goods, resulting in a lukewarm market performance. The diammonium export market has been hit by low prices, resulting in average export orders. The market sentiment remains bearish; some companies have begun implementing minimum sales guarantee policies, with the promotional period generally lasting until mid-to-late September. This has further intensified the bearish outlook in the market. In terms of raw materials: sulfur inventory at China’s main ports has risen to 1.72 million tons, with the sulfur market experiencing a general decline ； The phosphate rock market is trading sideways, with moderate market activity ； The supply of liquid ammonia is relatively abundant, while market conditions are trending downward. Trading in the downstream compound fertilizer market remains sluggish. At present, most companies are in a period of maintenance during the off-season. After mid-July, policies related to autumn fertilizers will be introduced one after another; downstream traders are cautious in their purchases and continue to adopt a strategy of purchasing only as needed, resulting in continued slow sales for these companies. Exports dropped significantly this year. Customs data show that in May 2016, China’s exports of diammonium phosphate amounted to 516,400 tons, with an average export price of $340 per ton. This represents a 26.93% decline compared to the 706,700 tons exported in the same period last year ； From January to May 2016, China’s exports of diammonium phosphate amounted to 1.3741 million tons, a decrease of 35.27% compared with 2.1228 million tons in the same period of the previous year. Currently, in China, the prevailing arrival price for 64% diammonium in Xinjiang is 2,500 yuan per ton; the prevailing ex-factory price in the southwest region is 2,100–2,200 yuan per ton. In the north China region, the prevailing arrival price is 2,350–2,450 yuan per ton, while in Shandong the prevailing arrival price is 2,500 yuan per ton, with lower-quality products costing 2,400 yuan per ton. The mainstream ex-factory price of 64% diammonium phosphate in Hubei is 2,100–2,200 yuan per ton. In Gansu, the mainstream ex-plant price for 64% diammonium phosphate is 2,450 yuan per ton; the settlement price remains roughly at this ex-plant level. In Xinjiang, the settlement terms are still under negotiation. In Shaanxi, the recommended selling price for 60% diammonium phosphate is 2,300–2,380 yuan per ton, while that for 64% diammonium phosphate is 2,550–2,650 yuan per ton; however, actual sales are rare. 　　International market: FOB prices in the international diammonium phosphate market fluctuated slightly, at 330–333 USD/ton in China (stable) ； Morocco: 330–355 yuan/ton (a decrease of 13 for the lower end and 5 for the higher end) ； Saudi 338-340 (stable at lower end, down 2 at higher end) ； Australia 335-336 (stable). In addition to OCP, India has also imported nearly 250,000 tons from China and Saudi Arabia, at a CFR price of $340 per ton. 　　Market forecast: With low raw material prices, a weak export market, and little improvement in demand, there are few positive factors for the market. It is expected that the diammonium phosphate market will remain weak and stagnant in the short term.

Weekly Review of Monoammonium Phosphate: Prices Continue to Decline Slightly. Author/Source: Date: 2016-07-01. Clicks: 10. This week, the market for monoammonium phosphate remained stable; downstream compound fertilizer manufacturers continued to operate at low levels, which did not lead to any improvement in demand for this product. Market transactions remained sluggish, with prices declining by 20-30 yuan/ton. To increase sales, companies still rely mainly on guaranteed orders and advance payments, but the results are not significant, and they continue to face considerable inventory pressure. The production volume of ammonium-based enterprises is low, with most orders coming from existing customers. Internationally: The mid-to-low price for monoammonium phosphate sold by OCP/EUROCHEM in Brazil is 350 USD/ton CFR. In terms of raw materials: sulfur inventory at China’s main ports has risen to 1.72 million tons, with the sulfur market experiencing a general decline ； The phosphate rock market is trading sideways, with moderate market activity ； The supply of liquid ammonia is relatively abundant, while market conditions are trending downward. Trading in the downstream compound fertilizer market remains sluggish. At present, most companies are in a period of maintenance during the off-season. After mid-July, policies related to autumn fertilizers will be introduced one after another; downstream traders are cautious in their purchases and continue to adopt a strategy of purchasing only as needed, resulting in continued slow sales for these companies. Currently, the prevailing transaction price for 55% purity powder is between 1,650 and 1,700 yuan per ton; some high-quality grades are priced at 1,750 yuan per ton, with transactions mainly occurring at the lower end of this range ； The transaction price for 58% powder is between 1,800 and 1,900 yuan per ton. 　　Future outlook: Weak raw material prices, poor domestic demand, and obstacles to exports mean that companies still hold large inventories. There are few positive factors at hand. Although the operating rate of these companies is low, demand will have to wait before there can be any significant increase in prices, especially before the demand for wheat fertilizers rises.

Weekly Review of Monoammonium Phosphate: Prices Continue to Decline Slightly. Author/Source: Date: 2016-07-01. Clicks: 10. This week, the market for monoammonium phosphate remained stable; downstream compound fertilizer manufacturers continued to operate at low levels, which did not lead to any improvement in demand for this product. Market transactions remained sluggish, with prices declining by 20-30 yuan/ton. To increase sales, companies still rely mainly on guaranteed orders and advance payments, but the results are not significant, and they continue to face considerable inventory pressure. The production volume of ammonium-based enterprises is low, with most orders coming from existing customers. Internationally: The mid-to-low price for monoammonium phosphate sold by OCP/EUROCHEM in Brazil is 350 USD/ton CFR. In terms of raw materials: sulfur inventory at China’s main ports has risen to 1.72 million tons, with the sulfur market experiencing a general decline ； The phosphate rock market is trading sideways, with moderate market activity ； The supply of liquid ammonia is relatively abundant, while market conditions are trending downward. Trading in the downstream compound fertilizer market remains sluggish. At present, most companies are in a period of maintenance during the off-season. After mid-July, policies related to autumn fertilizers will be introduced one after another; downstream traders are cautious in their purchases and continue to adopt a strategy of purchasing only as needed, resulting in continued slow sales for these companies. Currently, the prevailing transaction price for 55% purity powder is between 1,650 and 1,700 yuan per ton; some high-quality grades are priced at 1,750 yuan per ton, with transactions mainly occurring at the lower end of this range ； The transaction price for 58% powder is between 1,800 and 1,900 yuan per ton. 　　Future outlook: Weak raw material prices, poor domestic demand, and obstacles to exports mean that companies still hold large inventories. There are few positive factors at hand. Although the operating rate of these companies is low, demand will have to wait before there can be any significant increase in prices, especially before the demand for wheat fertilizers rises.

Q2 Review of the Compound Fertilizer Market: A Struggle Triggered by Grain Prices Author/Source: China Agri-Materials Date: 2016-07-04 Clicks: 5 This Week’s Focus “The bright moon startles the magpies on the branches; the gentle breeze brings the sound of cicadas in the middle of the night.” Amidst the fragrance of rice flowers, we speak of a bountiful year, hearing the croaking of frogs all around. ”The rural summer night scene is thus vividly depicted in the words. Compared to the pleasure of enjoying summer as depicted in poems, our agricultural supplies market seems rather troublesome. From April to June, the agricultural inputs market went through the end of spring plowing and the period associated with summer fertilization. In the second quarter, the impact of grain prices became more evident; farmers instinctively opted for fertilizers at lower prices, leading to an increase in sales of simple fertilizers and low-quality compound fertilizers. Compound fertilizers also faced competition during this season ； In 2016, the minimum purchase prices for wheat and rice did not have a positive impact on the market; the actual prices at which these crops were purchased were not satisfactory. Farmers’ enthusiasm for planting was repeatedly dampened, and manufacturers were unable to stimulate demand, so they had no choice but to go directly to the end-users in order to secure sales. 　　In April, when spring plowing is in full swing, business performance remains modest. Hence there is the saying \"Around Qingming, plant melons and beans,\" and there is also a farming proverb from the Northeast: \"Plant wheat during Qingming, and cultivate fields during Guyu.\" ”Except for the delayed agricultural production in Heilongjiang Province due to its short \"spring neck\" period, most areas across the country have entered the busy farming season. Although most agricultural supply dealers have reduced their inventory levels, due to years of oversupply in the market, goods remain plentiful. During the peak farming season, only a few regions require sporadic restocking. In terms of price, the ex-factory price of 45% chlorinated compound fertilizer is between 1,850 and 2,050 yuan per ton, while that of 45% sulfur-based compound fertilizer is between 2,200 and 2,300 yuan per ton. It is no longer meaningful to adjust prices in the later stages of preparation for planting; stability should be the priority for now. In terms of agricultural cultivation, due to low grain prices, farmers lack motivation to plant, and market demand has weakened. Although competition in downstream sales is fierce, it still fails to offset the overall mediocre performance this month. 　　May Seasonal transition Pressures on businesses At the end of April and the beginning of May, during the transition between spring and summer, there is an increase in demand for fertilizers for corn cultivation; however, market conditions remain sluggish. Out of caution, dealers choose to wait and observe. On the export side, both nitrogen and phosphorus fertilizers are sold at prices much lower than those in the domestic market, which increases the supply pressure within the country. There are no positive factors affecting prices; the ex-factory price of urea often remains below 1,300 yuan per ton, while the ex-factory price of 64% diammonium phosphate in Hubei has also dropped to 2,200 yuan per ton. As a result, simple fertilizers, two-component fertilizers, and low-end compound fertilizers are more popular among farmers. With a mindset of giving up on efficient farming practices, farmers reduce their investment in agricultural inputs, leading to a sharp decline in sales of branded fertilizers. Adding to this, in 2016, the three northeastern provinces and the Inner Mongolia Autonomous Region adjusted their temporary corn procurement and storage policy to a new mechanism based on \"market-based purchases\" coupled with subsidies; as a result, farmers, feeling uncertain, either voluntarily or under the influence of policies, stopped growing corn and switched to cultivating soybeans, peanuts, or other grains. In some areas, the movements are more significant; for example, in the “Sickle Bay” region of Heilongjiang Province ； There are minor adjustments in some areas; in any case, the adjustment of the planting structure is progressing rapidly, and corresponding changes in the amount and type of fertilizers used are beginning to appear. 　　The process of preparing fertilizers for summer corn cultivation is slow, and progress varies from region to region. Manufacturers maintain their original pricing, but in the latter part of this month companies have started to offer increasingly larger discounts. However, distributors are moving slowly; they focus on clearing their existing inventory and handle transactions related to summer fertilizers on a as-needed basis, in order to maintain a certain level of sales volume and market share. Compared to the performance of fertilizers used in field crops, the strong demand for fertilizers in cash crops represents the greatest source of comfort for manufacturers. Farmers are willing to invest adequately in this area, and branded fertilizers have considerable market potential in this sector. 　　June: Completion of summer fertilization; the season gradually enters a slower phase. During the Mangzhong period, people in the Yangtze River basin are busy with both planting rice and harvesting wheat, while in North China, there is no time to waste – wheat must be harvested and beans planted right away. The 2016 Plan for Implementing Minimum Purchase Prices for Wheat and Rice was released, but over the past few years farmers have managed to increase production without seeing an increase in income. Taking rice as an example, the Plan stipulates that the minimum purchase prices for early-maturing indica rice (third grade), mid-to-late maturing indica rice (third grade), and japonica rice (third grade) are 133 yuan, 138 yuan, and 155 yuan per 50 kilograms respectively; however, the actual purchase price for rice is 80–90 yuan per 50 kilograms. This is not only a blow to farmers, but also to agricultural input dealers. They hope to receive payments from farmers after the harvest; now, it seems they’ll have to wait for some time before getting paid. After the wheat harvest, corn or other grains are planted. This month sees the completion of the application of summer fertilizers; the market enters a slack period, with some manufacturers reducing production for maintenance purposes. However, other manufacturers continue to produce autumn fertilizers as per orders. By the end of June or early July, manufacturers may announce policies regarding autumn fertilizers, while downstream buyers remain cautious and wait to see what happens. 　　Journalist’s Observation: For this year’s market, if spring can be compared to the first mock exam for the college entrance examination, then summer sales represent the second mock exam. Perhaps the real test has not yet arrived, and manufacturers need to be prepared. As we all know, international grain prices have always been higher than those in our country. As a result, grain prices in our country remain low for some time; farmers therefore reduce their investment in agricultural inputs and face difficulties in collecting payments. Moreover, the practice of selling on credit cannot be changed in a short period of time, so this problematic relationship between grain prices and credit sales will continue for some time yet. 　　It is worth noting that as the sales of branded compound fertilizers were severely impacted in the first half of the year, after some time of research and adjustment, in the second half of the year they adopted a determined approach to capture the retail channels – perhaps in what could be seen as another round of fierce competition.

Daily Report on Phosphorus Ore / Author/Source: Date: 2016-07-06 Clicks: 12 The phosphorus ore market in Yunnan region remains stable; trading activity is low, and sales are modest. Companies tend to adopt a wait-and-see attitude, with few new orders, focusing instead on fulfilling previous orders. Trading started at low levels in the market, with prices moving weakly. Regarding prices: The phosphate mines in Jinning, Yunnan are operating normally, with an annual production capacity of 2 million tons. These days, the daily output is around 6,000–7,000 tons, and this output is affected by the conditions at the storage facilities. Currently, the delivery price at the warehouse for phosphorus ore with a purity of 23% is around 100 yuan per ton; for ore with a purity of 25%, it is 140 yuan per ton. The auction price for phosphorus ore with a purity of 28% ranges from 225 to 240 yuan per ton. The delivery price at the warehouse for ore with a purity of 29% is 280 yuan per ton, while for ore with a purity of 30%, it is 290 to 300 yuan per ton, with auctions being the common method of sale. The downstream yellow phosphorus market is operating in a weak condition, with some companies lowering their prices slightly. 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 stagnant, with insufficient price increases and no significant improvement in transactions. 　　The phosphate rock market in Hubei region is operating as usual, with no significant fluctuations in prices; sales remain weak and manufacturers are seeing modest levels of shipments. In terms of price: Hubei Zhongfu Chemical Group Co., Ltd. is operating its phosphorus ore production facilities as usual. The current price per ton, including taxes, for phosphorus ore with a purity of 28% is 380 yuan/ton, while that for ore with a purity of 30% is 440 yuan/ton. The price for ore with a purity of 32% is 500 yuan/ton. Most of the ore is used internally, with only a small amount being exported. It is expected that in the short term, the phosphate rock market in Hubei will remain stable, with little upward pressure on prices. 　　Hubei Yichang Mingzhu Phosphorus Chemicals mainly supplies phosphorus ore of 28% quality; its phosphorus mines are operating steadily, producing around 1,000 tons per day. The company serves its existing customers within the province, and its sales volume is fairly good. For 28%-grade phosphoric ammonium ore, vessel board quotes remain stable at 370 yuan per ton. There is limited room for negotiation on transactions, and orders are being accepted as usual.

The price of monoammonium phosphate declined in the second quarter. Author/Source: Date: 2016-07-05. Clicks: 14. The situation of monoammonium phosphate in the second quarter of this year was very different from that in the same quarter last year; the operation rate of monoammonium phosphate production facilities, as well as domestic demand and exports, were all unfavorable for manufacturers. Although the traditional peak season for demand of fall fertilizers is approaching, the current sluggish market environment suggests that actual demand will likely not pick up until mid-July or even late July. It is expected that the price of monoammonium phosphate will also show little improvement during this period. 　　In terms of operation rates, the utilization rate of monoammonium phosphate in the second quarter of 2015 showed fluctuations; April marked the onset of the traditional off-season for this product, and its operation rate gradually declined ； In May, due to the early and concentrated onset of downstream demand for fall fertilizer preparations, the operating rate of monoammonium phosphate plants rebounded. During this period, some manufacturers carried out routine maintenance and shutdowns, causing some fluctuations in the overall operating rate ； By the end of June, the average national utilization rate remained at a high level. In 2016, the operating rate of monoammonium phosphate production could aptly be described as “bouncing up and down.” Although there was a slight recovery at times, by the third week of June, the operating rate had dropped to its lowest level ever; the national average operating rate for monoammonium phosphate stood at just 54.25%. The trend of mainstream prices is similar to that of the operating rate. 　　In terms of domestic demand, in April 2015, due to reduced demand for monoammonium phosphate stemming from the production of summer fertilizers, it entered its traditional off-season with weak demand. However, in May, compound fertilizer manufacturers purchased significant quantities of monoammonium phosphate. Additionally, given the sharp rise in monoammonium phosphate prices during the same period in 2014, most compound fertilizer companies made advance purchases of this product. In the second quarter of 2016, demand for monoammonium phosphate remained weak. Compound fertilizer manufacturers were pessimistic about its future prospects; coupled with their own poor sales performance, they did not engage in any advance bulk purchases as they had done in the same period of 2015. Instead, they continued to adopt a just-in-time procurement strategy. 　　In terms of exports, the export performance of monoammonium phosphate was fairly good in the second quarter of 2015. A total of 911,400 tons of monoammonium phosphate were exported, with May seeing the highest export volume at 569,800 tons. Statistics show that in May, the FOB price of 55% granular monoammonium phosphate from Anhui reached as high as $376 per ton. At that time, the exchange rate was approximately 6.14, which corresponded to a price of 2,140 yuan upon arrival at ports. In the second quarter of 2016, export performance was disappointing. Although the export volume for June has not yet been calculated, the combined total for April and May amounted to just 298,000 tons. Given this sluggish export trend, it is unlikely that the export volume in June will reach 613,400 tons. A significant decline in monoammonium phosphate exports is inevitable. Currently, the FOB price of 55% granular monoammonium phosphate has dropped to $265–271 per ton, a decrease of roughly $100 compared to the same period last year.

A Review of the Compound Fertilizer Market in the First Half of 2016 Author/Source: JinYinDao Fertilizer Information Date: July 6, 2016 Number of views: 12 In the first half of the year, constrained by various factors such as the overall economic environment, upstream raw materials, and sluggish demand from downstream agricultural products, the compound fertilizer market saw poor sales performance and an exceptionally dismal market situation. The main characteristics observed during this period are as follows: 1. Prices generally showed a downward trend with fluctuations From an overall perspective, the compound fertilizer market trended downward throughout the first half of the year. There were significant price drops in January and February; March and April saw relatively stable market conditions, while May and June witnessed further declines amid fluctuations. 　　1. The reasons for the sluggish market performance in February are as follows: on one hand, nitrogen fertilizer prices plummeted; in particular, urea prices hit a decade-low. In Shandong, the ex-factory transaction price for small-particle urea dropped to around 1,200 yuan per ton, which failed to provide sufficient support for market costs and market sentiment ； On the other hand, dealers’ enthusiasm for winter stockpiling has declined; the continuous refusal to order goods has led to high inventory levels among companies and falling prices ； The third issue is that the structural adjustment of products is inadequate, which increases the difficulty for companies and distributors to stock up on goods, while also exacerbating the cautious attitude in the market. March and April are the periods when fertilizer is used at the grassroots level, and the market trend remains generally stable. In May, as the prices of products such as potash fertilizer and ammonium chloride declined, market activity remained moderate. Coupled with low corn prices, prices in some areas weakened. In June, due to the continued decline in the price of diammonium nitrogen fertilizer, there was insufficient momentum for an increase in the price of monoammonium nitrogen fertilizer; market expectations were poor, and companies reduced prices and cleared their inventories, resulting in a significant drop in the actual prices of compound fertilizers. 　　II. Increased frequency of price fluctuations among enterprises This year, due to the low prices of agricultural products, farmers and distributors have less enthusiasm for entering the market. Coupled with the instability in the prices of raw materials upstream, there has been a decline in interest in corporate policies. Due to increased pressure in terms of collections and shipments, more companies are setting reference purchase prices, and the scope of these policies is expanding. This contrasts sharply with the policy price of including one season in previous years. At the same time, as companies make frequent price adjustments, the correlation coefficient with upstream raw materials increases. 　　III. Decline in both export volumes According to customs statistics, from January to May 2016, China exported 170,000 tons of binary compound fertilizers, and 4,303 tons of ternary compound fertilizers containing nitrogen, phosphorus, and potassium. These figures represent a decrease of 62% and 69%, respectively, compared to the same period in 2015.

The price of AN sulfate has seen the first rebound. Author/Source: Agri-Fertilizer News. Date: 2016-07-05. Clicks: 18. The overall fertilizer market is currently in a sluggish state, with the prices of some varieties continuing to fall. However, the price of AN sulfate has rebounded first, serving as a positive note in the market. Some companies in Hebei, Shanxi, Shandong and other regions have raised their ex-factory prices for AN sulfate by 5 to 50 yuan per ton (prices are given per ton unless otherwise specified). 　　On June 22, 300 tons of sulfuric acid AN produced by Shanxi Wulin Coal and Coke were put up for auction; the starting price was 420 yuan, and the final selling price was 435 yuan, representing a increase of 45 yuan compared to the price on June 8. On June 23, Jiujiang Coal Storage and Transportation Co., Ltd. in Qian’an City, Hebei Province, issued a tender for 1,200 tons of sulfuric acid AN; the winning bid price was 530 yuan, representing an increase of 40 yuan compared to the price on June 13. 　　The price of anhydrous sulfuric acid has seen a rebound, due to two main reasons: first, there is strong support at the bottom level. According to industry insiders, the price of sulfuric acid in Hebei serves as a kind of benchmark for prices across the country. Over the past two years, there has been a pattern in the price of sulfuric acid AN in Hebei: whenever the price drops to around 440 yuan, it tends to rebound, indicating that there is strong support at this price level. It's the same this time too. Since early May, the price of sulfuric acid in Hebei has been fluctuating downward, starting from around 530 yuan; by early June it had dropped to around 440 yuan. Since then, the price has begun to rise again, and at present most companies see a price increase of 20–30 yuan. 　　Second, the operating rate of coking enterprises has declined. A considerable portion of sulfuric acid in the country comes from coking enterprises as a by-product of desulfurization, and the coking industry is closely linked to the steel industry. In March and April of this year, steel prices saw a sharp rise not seen in many years, and the operating rates of coking enterprises also increased significantly. However, after May, steel prices dropped significantly, and the operating rates of coking enterprises also declined, resulting in a reduction in the production of sulfuric acid AN. 　　However, the rebound in the price of anhydrous sulfuric acid this time will not be significant. The main reason is the weakening of the overall fertilizer market, particularly the continuous decline in urea prices, which has a negative impact on the sulfuric acid an market. Second is the sluggish export situation. According to customs statistics, China’s exports of sulfuric acid in May amounted to only 342,100 tons, marking the lowest monthly export level in recent years. In April, the export volume of sulfuric acid an was 420,800 tons, a 18.7% decrease on a month-on-month basis ； In April 2015, exports amounted to 612,500 tons, a decrease of 44.1% on a year-on-year basis.