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Along with Relatively Saturated Demand, MAP Prices Possibly Would Go down in the Short Term

China Agriculture Report By CnAgri2018-02-08 11:13:11China Agriculture Report Print
Keywords:Fertilizer MAP NPK DAP
Since the end of October, MAP prices have kept ascending and maintained at a high level of 2,350 RMB/MT for four months. According the current situations, the demand for MAP is relatively saturated and the prices possibly would decline in the short term.
(1) Currently, MAP companies have no more orders that will be delivered; besides, some NPK companies have abundant MAP stocks, and the materials are slowly consumed along with a relatively low operating rate resulting from environmental protection and limitation on natural gas; the demand for MAP is relatively saturated, so MAP prices possibly would go down in the short term.
(2) The supply at the ports is abundant before Chinese New Year. Currently, 30,000 MT of MAP is about to arrive at the ports of northeast, and NPK companies in the northeast have abundant MAP stocks and the overall number of replenishment is not big. And meanwhile port prices are around 2,450 RMB/MT, namely the ex-factory prices in Hubei only are 2,250 RMB/MT, less than local MAP transaction prices in Hubei. 
(3) Joint storage and sales appear in Central Plain. Currently, MAP companies and NPK companies in Central Plain jointly store and sell, and they don’t set a price, which shows relatively great pressure faced by MAP companies; besides, along with the coming of Chinese New Year, a drop in number of transporters and more rain and snow bring difficulty in transportation, especially MAP companies with relatively low storage capacity face greater pressure. 
(4) Powdery and granulated MAP prices hang upside down. Currently, granulated MAP production costs are higher than that of powdery MAP, but granulated MAP prices are less than powdery MAP prices, and the range is around 50 RMB/MT. Granulated MAP is mainly used for complex fertilizer. Due to a relatively weak demand, powdery MAP prices were relatively low. Along with the saturating of demand, powdery MPA prices possibly would go down. 

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