Supply/demand disruption oscillates the Water-Soluble Fertilizers market in Jan 2024
Supply/demand disruption oscillates the Water-Soluble Fertilizers market in Jan 2024

Supply/demand disruption oscillates the Water-Soluble Fertilizers market in Jan 2024

  • 13-Feb-2024 4:25 PM
  • Journalist: Robert Hume

Water-Soluble Fertilizers market witnessed several discrepancies in Jan 2024 which were defined by market purchasing activities, inventory level and consumption of commodities from the downstream Agrochemical enterprises. In China, the price trend for Water-Soluble Fertilizers witnessed a growth in the wake of limited availability and rise in demand fundamentals. Conversely, US market witnessed a plunge in fresh purchases and limited supply pressure, keeping the price trend in the steady to low levels.

The price of Water-Soluble Fertilizers in China currently experienced a 13% increase, rising from USD 631/MT to USD 713/MT in Jan 2024. This surge has impacted APAC importing nations due to China's export restrictions, which have left the global Water-Soluble Fertilizers market uncertain. Malaysian buyers are shifting away from China, opting to purchase Phosphate from Vietnam and Egypt instead. Sales of China's DAP and mono-ammonium phosphate (MAP) precursors, vital components of Water-Soluble Fertilizers, have recently slowed down due to declining domestic production. South Korea, which has voiced grievances to China regarding delays in Water-Soluble Fertilizers exports, is actively seeking alternative suppliers.

Additionally, the Chinese Ammonium sulphate market price rose in Jan 2024. There has been a rise in market inquiries, an improved trading atmosphere, and a continuous increase in the bidding price of Ammonium Sulphate. The processed phosphate market was currently balanced, with tight supplies offset by sluggish demand. Buyers are hesitant due to concerns about farmer affordability amid sluggish prices.

Meanwhile, in the US market, the price of Water-Soluble Fertilizers (Mono Ammonium Phosphate) has stabilized on the lower end with the minute decline of 0.7%, dropping from USD 815/MT to USD 809/MT in Jan 2024. Both commodity prices and shipment volumes of US exports of Agricultural and related products have decreased. After a robust year-end sales period, the Water-Soluble Fertilizers market remains slow ahead of the spring buying rush. Participants in the Urea market found barge interests diminished once again. The market is now awaiting spring demand to pick up, although this may be delayed due to challenging weather conditions across the US, including extreme cold, snow, and ice across many states, with little fresh interest emerging. Despite the lag in fresh movement, overall MAP values are holding stable in anticipation of a promising season ahead.

According to ChemAnalyst, it is expected that the prices of Water-Soluble Fertilizers will rise in the forthcoming months due to demand recovery and increase in the spot purchasing activities. As the temperature will shift from cold to summer, agricultural and trading activities are anticipated to pick up, leading to an uptick in demand. Currently, bidding activities are also low, but they are expected to increase. Conversely, in the Asian market, the prices of Water-Soluble Fertilizers are predicted to decrease in the wake of moderate demand and adequate supplies which will further force the enterprises to trade the cargos at low prices.

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