Market demand is weak
Recently, the overall trading atmosphere in the domestic monoammonium phosphate market is weak, although the factory is to be issued under the support, the price remains stable. But most of the downstream compound fertiliser enterprises have held part of the raw material stockpile in advance, the other by the finished goods inventory as well as the device to maintain a low load impact, and then urea prices continue to fall pressure on the purchase of high-priced monoammonium phosphate procurement enthusiasm cooled down, only to maintain a small amount of on-demand purchases. Continuing sideways more than 20 days, some traders frustrated mentality, in the factory to urge shipments as well as for the collection of multiple pressures, the price appeared slightly negative, Hubei market 55 powder factory near to RMB 3350 /mt.
Autumn fertiliser delivery volume in the near future
Recent downstream dealers pickup intention is not high, in addition to the impact of the decline in urea prices, suppressing the enthusiasm of agents pickup, the market is slow, which led to an increase in finished product inventories, through the monitoring of the domestic 32 mainstream compound fertilizer enterprise inventory of 685,500 mt, up 4.78%. It is reported that the current autumn fertiliser arrivals only in the vicinity of 30-40%, the downstream start slow, but with the passage of time, reserved for the market stocking, laying time is constantly shortening, and the raw materials for the time being will not appear obvious changes, so it is expected that the market is expected to start in the middle of the 8th to have successive release of the expected amount of goods.
Downstream device start load continues to improve
As of August 8, the domestic compound fertilizer capacity utilization rate is slowly picking up, according to Lonza information statistics at 38.75%, only 0.29 percentage points more than last week. By the fall of urea and autumn fertiliser continued to go poorly, the compound fertilizer plant working load to improve slowly. But with the shortening of the autumn market preparation time, the market arrivals are seriously inadequate, is expected to usher in the middle of August is bound to go well after the peak of finished goods, finished goods better, the market flow of goods up, the industry capacity utilisation rate will also be improved.
Overall, autumn fertilizer stocking time is gradually shortened, compound fertilizer downstream dealers will gradually increase the enthusiasm for taking goods, next week, the market is expected to have successive release of goods; and with the improvement of the goods, compound fertilizer capacity utilization will enter a phase of rapid enhancement of the monoammonium phosphate just need to make up for the single procurement return; at the same time to consider the raw material phosphate rock will be tight price, sulfur is also a high level of consolidation, the cost side of the thrown with the support, it is expected that the price of monoammonium phosphate to remain narrow. Monoammonium phosphate prices to maintain a narrow adjustment.
