2024.10.08-2024.10.11 Weekly summary of feed grade phosphate products
Raw materials:
There is still no official news about the make out products time of Yunnan Copper’s new plant at present, and due to the low inventories or sulfuric acid, the price of sulfuric acid in Yunnan including Yunnan Copper, Yunnan Tin Industry, and Yunnan Chihong Zinc Germanium has been increased by 30 to 60 yuan per ton, which will drive up the cost of dicalcium phosphate products by about 42 yuan per ton. And the acid price in Sichuan is also increased by 30 yuan per ton driven up by the rising acid price in Yunnan.
On the demand side: It is also expected that the sulfuric acid prices will fall in September, so the distributor mostly purchase in a back-to-back or fast-in fast-out manner. And the feed mills also purchase in a form of small quantities and frequent replenishment. However, Yunnan Copper has not yet made out the acid and there is no reliable official news on the specific date. The feed mills have to replenish stocks, so there has been a concentrated and small amount of procurement demand recently.
Supply and operating rate:
The operating rate of dicalcium phosphate has been increased compared to the national holiday, but there is still a mainstream large factory in Yunnan is still in a state of shutdown. Due to the negative impact of acid price after the new Yunnan copper plant starts producing acid in the later stage, the factories under producing are keeping a controlled amount of orders based on current raw material costs and their own production capacity, and maintaining reduced production. Therefore, the supply is still tight, it takes time for downstream customers’ new orders to scheduling and producing. In addition, factories also expect prices to fall in September, so they have reduced or stopped production to reduce their inventories in the early stage. As a result, they are now facing a concentrated demand with insufficient factory inventories, coupled with the increase in sulfuric acid prices, so they have also raised their prices accordingly.
Forecast: There is still no official news and the specific date of Yunnan Copper’s new plant’s sulfuric acid, and another major acid factory has a maintenance plan next month with a maintenance time of about 30 days. Therefore, in the short term, there’s increasing expectation of sulfuric acid price in Yunnan. The pending orders’ schedules for dicalcium phosphate factories is sufficient and delivery is still tight, which is difficult to ease in a short time, and the price of phosphate products remains stable with an upward trend. Currently, it is in the peak season, which is positive support for the demand.
