Domestic phosphate fertilizer market may be deadlocked

Domestic Phosphate Fertilizer Market May Be Deadlocked **International Market**: In August, the global phosphate fertilizer market showed signs of stagnation. India’s demand remained weak as the end of the spring season reduced import volumes. Meanwhile, Pakistan increased its purchases of diammonium phosphate, with two batches sourced from China at a CFR price of $460 per ton. Latin American buyers also maintained a cautious approach, with procurement activity not picking up significantly. The price for diammonium fell slightly to $450 per ton CFR, down from $455 the previous week. With weak international demand and frequent price drops, the domestic market is struggling to maintain stable pricing. **Domestic Market**: Currently, the mainstream prices for 55% powdered monoammonium phosphate remain steady at 1,900–1,950 yuan per ton. In Hubei, the price for 57% powder ranges from 1,970 yuan per ton, while in Shandong, the arrival price for 58% stands at 2,150 yuan per ton. In Hubei, the ex-factory price for 57% diammonium phosphate is between 2,350–2,400 yuan per ton, while 60% and 64% grades are priced at 2,600 and 2,650–2,700 yuan per ton, respectively. Despite these levels, market participants are still facing uncertainty due to fluctuating prices. **Analysis**: Facing a weak international environment, major domestic fertilizer producers are still trying to secure export contracts before the market cools further. Many companies continue to negotiate export deals, but the lack of strong demand has limited their success. On the domestic front, companies have taken measures such as lowering prices, ensuring minimum support, and reducing inventory to ease pressure. However, the instability in pricing has made traders hesitant to take delivery, leading to a renewed slowdown in the phosphate fertilizer market. **Prediction**: As the fall season approaches, the production of fertilizers will create another consumption channel for ammonium phosphate stocks. With export prices declining, domestic prices are expected to follow suit, potentially leading to a downward trend in the coming weeks. Traders and producers alike are closely watching the market for any signs of recovery or further decline.

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