中国磷化工月报(中国磷行业月度报告1804)

China’s phosphorus chemical market was slack in April 2018 as phosphorus ore and STPP markets remained stable because of balanced supply and demand; yellow phosphorus and phosphate fertiliser prices slid down due to sufficient supplies and sluggish demand; phosphoric acid prices edged down following raw material prices.

Market dynamics of phosphorus chemicals in April 2018

Phosphorus ore: China’s phosphorus ore market remained stable resulted from balanced supply and demand. Phosphorus ore outputs in major production areas were limited, decreasing market supplies; while downstream phosphate fertiliser companies provided limited demands.

Yellow phosphorus: The yellow phosphorus price declined triggered by slack downstream glyphosate market and sufficient market supply of yellow phosphorus out of stable operating rates of manufacturers in Sichuan and Guizhou provinces. The operating rates of yellow phosphorus companies are predicted to slightly drop in the short term because of market depression.

Phosphoric acid: Domestic phosphoric acid price slightly declined due to fewer transactions and smaller demands from downstream industries, as well as a wait-and-see attitude towards purchasing.

STPP: Mainstream STPP prices scarcely changes with few companies quoting lower prices. In April, STPP prices were supported by sodium carbonate prices, while the support was offset by dropping yellow phosphorus and phosphoric acid prices. In addition, few transactions were made in the STPP market and manufacturers kept production to fulfill previous orders.

MAP: China’s MAP price maintained the downward trend as demand from downstream compound fertiliser companies was sluggish. With sufficient storages, the majority of MAP manufacturers cut capacity this month and the operating rate of producers in Hubei Province and nearby regions was 40% approximately. Some small factories even halted production.

DAP: Domestic DAP prices kept steady but showed a tendency to decrease. The spring cultivation had come to the end except in North and East China. Therefore, DAP enterprises quoted lower prices for sales promotion.

The USD/RMB exchange rate in this newsletter is USD1.00=RMB6.2764 on 2 April, 2018, sourced from the People's Bank of China.

All the prices mentioned in this newsletter will include the VAT, unless otherwise specified.

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