2024.10.14-2024.10.18 Weekly summary of feed grade phosphate products
2024.10.14-2024.10.18 Weekly summary of feed grade phosphate products, DCP MCP MDCP
Raw materials: The sulfuric acid of Yunnan Tin Industry has raised again by CNY30 per ton due to the low inventory, and they intend to suspend production for maintenance next month. Yunnan Copper’s new plant produced acid this week but it hasn’t for sales. It remains to be seen if they are able to produce steadily and continuously. The solid sulfur is about CNY1200 per ton and the liquid sulfur is about CNY1210 per ton this week, with an increase of CNY30 per ton from last week. It’s expected that the sulfuric acid will remain stable in next week.
On the demand side: Due to the negative impact of acid price of later period, some feed mills replenished stocks on demand with a strategy of multiple purchasing with small quantity; some trading companies keep wait-and-see attitude to the price or take the back-to-back purchasing strategy. At present, the slow season for the MCP, so the demands for MCP is gradually weak; the customer will hold a cautious purchasing attitude for DCP and MDCP even if it’s peak season for these two products.
Supply and operating rate:
The operating rate has been increased compared to last week, the mainstream large factory in Yunnan who was shut down before resume production this week. The market supply might increase in later stage, but the factories would not come to full production until Yunnan Copper new plant could produce steadily and continuously. One of mainstream producer of MCP and MDCP in Yunnan will suspend production for maintenance for 30 days in next month, so the market supply would be decrease. On the other hand, factories collected sufficient orders previously and their production plan for October even the early November has been fully arranged. In the later stage, factories mainly deliver early orders, and the situation of tight supply will continue.
Forecast: Expected that the price will remain the same in the next week. Some factories may continue to increase prices, but the overall market is expected to maintain the current price.
