CN/CAN EXPORT RESUME BRINGS PRICE SURGE
Yellow phosphorus: price edged down narrowly. The weekly-opening average price stood at CNY27,629/t and the weekend benchmark price dropped to CNY27,563/t. The price change resulted from plant-maintenance started in Guizhou but later resumed operation, supply grew. Downstream demand stayed slack season, buyers resisted high prices and trading activity remained thin. Low factory inventories limited downward space, with southwest spot prices fluctuating between CNY26,800-27,000/t.
P.A. 85% tech. grade was in downtrend. The wet process P.A. benchmark price fell from CNY8,850/t to CNY8,700/t. Raw materials’ weakened cost support the downtrend for hot processed acid. Traditional fertilizer demand stayed slack season and phosphate salt transactions remained sluggish, only LFP market kept rigid demand. Wet process factories faced stockpile pressure with low capacity operation. Main southwest spot quotes stood at CNY8,400-8,900/t amid widespread market wait and see sentiment.
Sulphur fluctuated at high level both in China and abroad. Intl’ market, Kuwait’s August long term contact FOB price dropped to USD865/t while Qatar’s quote stayed steady at USD890/t. Shipping risks and steep marine insurance premiums over the Strait of Hormuz kept Far East landed costs high. Indian spot CFR prices ranged USD1,000-1,100/t, and fertilizer plants hesitated on high cost purchases. China domestic spot prices remained firm. Coastal ports granular sulphur was quoted CNY9,150-9,540/t. Low port inventory offered price support. Phosphate fertilizer factories operated at low loads and only placed rigid demand orders. Traders waited for autumn fertilizer-preparation demand.
Urea trended weakly in fluctuation globally. Intl’ prices faced downward pressure. India’s upcoming 1.7mln tons tender stirred market sentiment. While Southeast Asia CFR price stayed USD315-330/t amid sluggish season with cautious purchases. High operation rate guaranteed ample supply in China and in-factory inventory kept rising. Field top-dressing is finished, compound fertilizer and panel manufacturers only placed rigid demand orders. Spot prices dipped early-week, then rebounded after Nitrogen Fertilizers Association’s meeting to stabilize the market. EXW price in Shangdong came to CNY1,690-1,720/t. Oversupply remained dominant, prices fluctuated on tender news with widespread wait-and-see mood.
Amsul market was in uptrend. Intl’ market, tight overseas supply lifted Brazilian granular CFR quotes to USD230-250/t, driven by the global fertilizers stocking up. Since the Amsul export is CIQ required from mid July, coking-grade bid prices surged in China. Caprolactam grade facilities had a low operation rate and restricted supply. Purchases from compound fertilizer and rare earth sectors was warming. Main coking-grade EXW price stood CNY920-1,010/t and caprolactam grade stayed CNY1,180-1,190/t. Weak demand limited domestic consumption. Prices were backed mainly by export prospect and industrial rigid demand while traders waited cautiously.
Calcium Nitrate and Calcium Ammonium Nitrate export window opened in end of July. And export to India was also released since last week. Price had a sharp rise as factories in Shanxi already took boosted export orders and raw materials cost comes up.
Potash market stayed weak globally. Intl’ demand remained sluggish. Russia’s border trade long term KCl contract price stayed at USD374/t, and Southeast Asia CFR price was USD390-410/t. Autumn fertilizers preparation had not begun, putting sales pressure on intl’ suppliers. Increased port arrivals lifted domestic KCl inventory with ample supply. Compound fertilizer factories prioritized high phosphorus formulas and purchased little potash. Main stream 62% Belarus potash port price was CNY3,150-3,350/t, and border trade goods were sold at low prices. SOP faced downward pressure from raw material costs yet limited losses, with traders waiting for autumn fertilizer demand. 50% powder grade prices was CNY3,850-3,900/t, and 52% grade EXW price was CNY4,250-4,300/t with negotiable deals.
SCFI is 3,276 (+70), CCFI is 1,840 (-0.9%). USD:CNY exchange rate keeps downtrend to 1:6.74.
