VINACHEM

Ammonium phosphate producers in China were halting offers into the domestic market on firm sulfur prices to manage costs better, market sources said on March 5.

A Hubei-based source said producers have stopped taking orders due to firming prices of sulfur, a raw material in the production of technical monoammonium phosphate and other ammonium phosphate fertilizers.

"Because of sulfur prices increasing a lot and quickly, there is a big risk for producers to manage the cost as they do not want to offer too much quantity in order to manage their cost," another source said.

Additionally, export quotas for 2025 are expected to be lower than in 2024, when exports of MAP were 2.5 million mt, out of which around 350,000 mt were TMAP, diammonium phosphate was 4.5 million mt, and other NP fertilizers accounted for about 1.7 million mt, according to the Sichuan-based source.

Early this week, domestic sulfur prices in the River were heard to be between Yuan 2,200/mt and Yuan 2,300/mt, while domestic Hubei MAP 11-44 was heard to have risen to Yuan 3,500/mt ex-works, lower by Yuan 100/mt from Hubei DAP EXW in the week.

Unlike state-owned producers, who need to be aligned with Beijing, MAP prices domestically are dominated by private companies. A source said domestic MAP prices surpass DAP in the local market, which was described as "mild and comfortable."

Market participants were mixed about the near-term prospects for Chinese ammonium phosphate fertilizer exports, sources said. Some participants believe they can get cargo even in April, while others do not expect availability until at least May.

Based on current market conditions, exports may be delayed to April or later, according to the Sichuan-based source, adding that lower export volumes would help bring down domestic prices to more reasonable levels.

"It's a very critical timing right now as the [Two Sessions] conference is held in Beijing to decide on the base policy, which will take about two weeks," another source said, adding that following the conference, the China Phosphate and Compound Fertilizer Industry Association will get "a better picture" of the market.

Separately, the source added that any offers into the domestic market would be "meaningless" now as the planting period in China has begun.

China's annual National People's Congress, commencing on the morning of March 5, is expected to last seven days, concluding in the afternoon of March 11.

Platts, part of S&P Global Commodity Insights, assessed CFR China spot granular for sulfur at $235-240/mt in the week ended Feb. 27, up $30/mt from a week prior. Meanwhile, the domestic price for granular sulfur CFR China River was assessed at Yuan 2,050/mt, up Yuan 200/mt week over week.

Separately, Platts assessed TMAP for EXW China River at Yuan 6,000/mt, up by Yuan 201/mt from a week ago, and FOB China for DAP was at $620-$625/mt, up $5/mt week over week.

– Source: Platts