Good support for strong monoammonium phosphate market is still in an upward trend

     Lead: Recently, the market price of monoammonium phosphate has risen sharply under the combined influence of multiple favorable factors. It is currently halfway through August. However, from the perspective of market prices, the rise in the monoammonium phosphate market has not stopped, and the prices of raw materials remain high., the market can supply limited, and market demand continues to be released in autumn. Coupled with the joint promotion of multiple favorable factors such as the help of international markets, the market price of monoammonium phosphate continues to rise. As of August 15, 2023, the 55% powder index of China's monoammonium phosphate has risen to 2,861.43, the 55% particle index has stabilized to 2,820.00, and the 58% powder index has risen to 3,133.33.

Since early July, the monoammonium phosphate market has shown an upward trend. As good news continues to be released, the market price increase has accelerated after entering August. This is due to the following reasons:

1. Raw material prices continue to increase, and the cost side provides certain support to the market.

Sulphur: Recently, China's sulfur prices have fluctuated upward supported by the positive fundamentals. As of August 15, the price of liquid sulfur in Shandong's local refining industry is 930- 1,010 yuan/ton. Downstream factories are actively purchasing in the market, and refinery inventories are not under pressure. Most cargo holders are not willing to ship, and low-priced sources are difficult to find on site. Market prices may continue to remain high in the short term.

Synthetic ammonia: Affected by the delay in the start-up of some units in Shandong, there is little market supply pressure in the short term, and downstream players are more enthusiastic about entering the market to replenish stocks, which supports the continued increase in market prices to a certain extent. Most players in the market are obviously bullish.

Phosphate rock: At present, the overall start of the phosphate rock market is relatively stable. Supported by better downstream demand, the price in the Chinese market is stable and rising. It is reported that the new price of phosphate rock may be implemented in early September, and phosphate rock prices will remain high in the short term.

2. Demand continues to be released

Autumn is the peak season for high-phosphate fertilizer production, and the market demand for ammonium phosphate accounts for a relatively large proportion. Most of the major factories in the market choose to stock up in advance. From late June to early July, the major factories start to enter the market to stock up, and new orders on the market continue to be traded. The quotations of monoammonium phosphate manufacturers began to stop falling and rise instead. With the signing of previous orders, the manufacturers 'inventories were moved smoothly to the warehouse and there were abundant orders to be issued. Most factories began to suspend quotations, receive orders in limited quantities, and suspend orders. Supported by tight market spot circulation, market prices continue to increase.

On the whole, raw material prices are still at a high level, and there are still expectations of upward adjustment in the short term. The cost side still provides support to the ammonium phosphate market. In addition, the monoammonium phosphate factory is still in a state of suspension without taking orders and taking orders in a limited number. Most companies will be ready until the end of August or early September. Although the monoammonium market is starting to improve, the tight market supply situation has not been alleviated. The bullish sentiment of the industry is obvious. Most of the holders in the market are not willing to ship. In addition, the international market is on the rise. Boosting market sentiment, at present, the market price of monoammonium phosphate may remain high in the short term under the simultaneous support of multiple positive factors. However, it is also necessary to pay attention to the chasing sentiment of traders and downstream terminals as prices continue to rise.