Phosphate Ore: the phosphate ore market shows obvious differentiation. Supply of yellow phosphorus remains tight with high prices due to tight supplies in Yun’nan, while weak downstream production cuts drag trading of wet-process phosphoric acid. Mine output is reduced by safety inspections and mining right issues across regions. Downstream wet-process acid plants operation rate is still below 35% during slack season. Clear price gaps exist for the different grades of rock phosphates in different areas. International geopolitical conflicts disrupt shipping and lift freight rates. China imported 729.4kt of rock phosphate during Jan. to Apr., 2026. Import price in April rose significantly MoM. Imports mainly come from Egypt, Peru and Jordan.
Regulations for the Implementation of the Mineral Resources Law of the People’s Republic of China (Decree No. 839 of the State Council) was passed on May.9 and took effect since June.15, 2026. Phosphate ore has been officially included in the national catalog of strategic mineral resources (the same Critical Minerals Law was also implemented in Canada and the US in 2024-2025). It now ranks alongside scarce resources, becoming one of the 36 key minerals subject to strict state control. Phosphate ore is no longer merely a raw material for agricultural fertilizers; it has become a strategic national resource vital to the national food security, new energy security, and the security of the chemical industry supply chain. In the past, the market focus on rock phosphate is fertilizer price trends and supply-demand fluctuations; while today, it is related to the national security, the lifeblood of industry, and global strategic competition.
Sulfur prices slumped sharply last week. Granular sulfur port price stood at CNY9,400/t (-CNY2,350/t, about -20% WoW). Total port inventory fell 9.65% to 751.6kt, hitting a decade-low. The slump stemmed from US-Iran detente easing supply fears; downstream buyers held back and refinery auctions failed, with mild support only from some rigid restocking. Tight supply-demand balance is unchanged. Domestic output is only 184.4kt, while the market demand is 328.2kt. Liquid sulfur arrivals plunged 43.75% with scarce solid cargoes. Regional divergence emerged: Northeast sulfur surged while Northwest prices retreated from highs. Sulfur-based acid still suffers cost inversion with narrowed losses and cut operating rates; ore acid sees tiny profits, smelting acid boasts solid margins, strongly underpinning sulfuric acid costs.
MAP: On June 17, China raised the benchmark price of Monoammonium Phosphate (MAP) by another CNY250/t. The EXW price of 55% powder MAP in Central China reached CNY4,450/t. This is the second price hike following a CNY350/t increase on May 29, bringing the total year-to-date gain to CNY600/t. Producers keep suffering heavy losses due to persistently high sulfur cost. Recently, the operating rate of the MAP has staged a phased recovery. The lifted benchmark price offered market support, while incoming affordable sulfur eased cost burdens jointly. Some manufacturers moderately increase production, with several factories that underwent maintenance resumed operation. As of June 18, the national capacity utilization rate of MAP stood at 48.16% (+3.8% WoW yet -7.05% YoY).
Urea: as of June 24, 2026, China’s enterprise inventory of urea stood at 1.1336 million tons, rising by 47,800 tons or 4.40% week on week. Low operating rates of compound fertilizer plants and sluggish end-user demand failed to boost domestic urea consumption. Sluggish exports became the key reason for slow inventory digestion. After India’s new urea tender and news about relaxed Chinese exports, overseas buyers turned cautious. Returning supply from the Middle East eased global supply tightness. Combined with shifting policies, international urea prices fell sharply.
