Diammonium phosphate | trading light but the domestic market remains stable

Recently, the domestic diammonium phosphate market is in the off-season, the autumn demand has not yet started, the downstream procurement enthusiasm is general, the market wait and see atmosphere is strong, a small amount of trading, but the volatility is limited, the transaction atmosphere of the domestic diammonium market has always remained stable. There are mainly the following influencing factors.

Cost support is strong

Recently, the sulfur market has risen rapidly, mainly driven by the good downstream demand, low-price supply is difficult to find, and traders push up the atmosphere is not reduced. By July 2, the price of sulfur in Yangtze River Port increased by about 130 yuan / ton, and the cost of diammonium increased by 65 yuan / ton; Hubei synthetic ammonia decreased by 160 yuan / ton compared with June, and the cost decreased by 35.2 yuan / ton; the price of high-grade phosphate ore in Hubei province has stabilized temporarily, but the low-grade ore has increased by 20-30 yuan / ton. Overall look at the diammonium phosphate cost surface rose compared with last month. Cost support is stronger than last month.

International markets are holding strong

The international diammonium phosphate market continues to have an obvious upward trend. At present, the export offshore transaction price has reached about $547 / ton FOB, up by about $25 / ton compared with the same period in June. It is mainly due to the start of the fertilizer market in July. As the rainy season comes in most South and Southeast Asian countries, the amount of fertilizer increases, the import demand surges, and the export orders of enterprises are sufficient. In addition, Bangladesh recently issued a tender of 500,000 tons of diammonium phosphate, which boosted the international market sentiment, the international supply of goods is expected to be tight, the enterprise quotation continued to run upward, and the transaction price was higher.

The domestic market mentality is better

Although the domestic market demand is relatively flat, but due to the recent export implementation of enterprises, the arrival of the domestic market is not much, and 64% of the supply is tight. In addition, the high price of monoammonium phosphate of related products is expected, the diammonium market is more positive, and a small amount of transaction prices remain stable.

To sum up, the current demand in the domestic market is light and the downstream procurement atmosphere is general, but boosted by the high price of the main raw material sulfur, the strong international price and the market of related products, the diammonium market is stable and the outlook for the future market is good. Short-term domestic diammonium market stable consolidation.(Longzhong Information)