Domestic diammonium phosphate has been spread

The domestic diammonium phosphate market is currently operating with a stable rhythm, and the overall distribution of products is in line with expectations. However, in certain regions, shipment volumes are nearing saturation. At present, the average production rate among manufacturers is around 70%, with most companies still adopting tentative pricing or requiring advance payments. In the near future, settlement prices are expected to emerge, but due to variations in brand reputation, product specifications, payment terms, and transportation distances, pricing remains somewhat fragmented. The mainstream 64% content diammonium phosphate is temporarily priced between 3150–3200 yuan per ton, while high-end grades are available at 3300–3350 yuan per ton, offering greater price flexibility. It has been observed that the upcoming colder weather in the Northeast and Xinjiang areas has slightly slowed down shipments to grassroots markets, and the end-use demand has also seen a slowdown. Chen Liangyu, Deputy General Manager of Shandong Xianghe Agricultural Assets Co., Ltd., noted that the recent drought in Yunnan is severe, leading to a relatively sparse spring plowing season. This is the fourth consecutive year of such conditions, which has prompted changes in local planting structures and fertilizer application timing. The amount of fertilizers used has gradually decreased, and the period during which farmers apply fertilizers has become shorter. Most farmers tend to purchase fertilizers in concentrated batches during the rainy season, with fertilizer application typically completed within a month after the rains. Diammonium phosphate has now reached the final stage of distribution, awaiting further grassroots delivery. Prices in Heilongjiang remain relatively high, ranging from 3250–3350 yuan per ton, while 64% diammonium in the northwest is priced around 3200 yuan per ton. On the other hand, monoammonium phosphate has not shown significant improvement in recent developments. Most manufacturers report limited new orders, and market price adjustments have not met expectations. The current production rate is acceptable, but due to the dominance of high-nitrogen fertilizers in spring applications, the demand for phosphate fertilizers remains low. With excess ammonium production, the market for small-quantity use has shrunk. Currently, the mainstream 55% powder ammonium is reported at 2,300 yuan per ton, with actual transactions ranging from 2,220–2,280 yuan per ton. Pelletized 55% ammonium is quoted at 2,350 yuan per ton, while 58% ammonium phosphate is estimated at 2,500 yuan per ton. Factory delivery for 60% ammonium phosphate is offered at 2,650–2,700 yuan per ton. Overcapacity remains a key challenge in the monoammonium phosphate sector. As the distribution of diammonium reaches its final phase, dealers are well-stocked, resulting in fewer new orders from manufacturers. Lei Yuncong, manager of the Phosphatic Fertilizer Department at Heilongjiang Beifeng Shandong Agricultural Resources Co., Ltd., mentioned that Heilongjiang has not yet set a buyout price, as spring plowing is only beginning in early May. Therefore, pricing decisions will likely be made by mid-April. Wholesale inventory is already in place, and grassroots distribution is progressing steadily. In Shandong, wheat top-dressing has started, increasing the use of diammonium phosphate. Distributors have sufficient stock, and there is no shortage of supply. In North China, corn fertilizers are expected to be sold soon, but due to varying diammonium prices, some areas are opting for compound fertilizers instead. The domestic fertilizer market continues to show a steady trend, though downstream demand remains insufficient, and the volume of monoammonium phosphate sales is modest. "There is a serious overcapacity in monoammonium phosphate, leading to unbalanced market competition," said Lei Yuncong. "This is causing growing pressure on inventory and increasing the risk of losses." He added that this year's compound fertilizer sales are flat, and the overall decline in sales has not met expectations. If compound fertilizer prices drop, farmers may prefer it over diammonium, leading to a decrease in diammonium usage. In 2012, China produced approximately 14.55 million tons of monoammonium phosphate, with exports reaching 595,000 tons. Domestic demand was about 9 million tons, creating a significant supply-demand gap. With the entire fertilizer industry facing oversupply, competition is fierce. In this scenario, advantages in resource allocation, technological innovation, and industrial chain integration are becoming key drivers for industry development. Distributors generally do not hold large stocks. First, the market cannot absorb excessive fertilizer supply, and second, there are numerous brands, leading to strong brand loyalty among farmers. Fake fertilizers are also a major issue, making it difficult for genuine products to compete effectively during the sales season. The focus on exporting diammonium to Jigang has largely concluded. Grassroots distribution is nearly complete, and the product is still under construction. The next focus is preparing diammonium for export to Hong Kong after the customs period. Recently, the ammonium market has remained weak, with few new orders and prices struggling to rise. The domestic oversupply situation is still challenging, and the peak season has not delivered the expected results. In the short term, monoammonium prices are expected to remain stable but at a low level. The distribution of spring-planted crops is coming to an end, and diammonium is expected to remain stable in the short term. With excess domestic production capacity and international market pressures, diammonium is likely to face a downward trend before the phosphate fertilizer window period opens.

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