According to China Chemical News, the domestic monoammonium phosphate (MAP) market has recently exhibited a pattern of “cost pressures, supply contraction, and slight price increases.” Raw material sulfur prices continue their upward trajectory at elevated levels. Coupled with cost support from phosphate rock, liquid ammonia, and other inputs, production costs for monoammonium phosphate keep climbing. Against this backdrop, routine maintenance at some plants and voluntary production cuts have temporarily reduced overall market supply. Meanwhile, downstream compound fertilizer producers and agricultural end-users primarily engage in rigid procurement, passively accepting current prices. Market price levels have edged up slightly driven by cost pressures.

As of December 5, the core raw material market for domestic MAP maintained a firm upward trajectory, intensifying production cost pressures. Specifically, sulfur prices continued their upward trajectory at elevated levels. The self-pickup price for granular sulfur at Yangtze River ports stood at RMB4,115 (per ton, same below), accumulating an RMB80 increase since the beginning of the month, with robust cost support persisting. The sulfuric acid market showed localized strength, with Hubei sulfuric acid delivered to factories priced between RMB940 and 1,030. High-end prices rose by RMB20 compared to the beginning of the month, further elevating acidification process costs. Phosphate rock prices remained elevated due to resource scarcity and tight supply, with 28% grade phosphate rock FOB prices stable at RMB980-1020 . Synthetic ammonia prices in Hubei remained steady.

Comprehensive calculations indicate that, based on the current ex-factory price of RMB3,650 per ton for 55% monoammonium phosphate, leading domestic producers are now incurring losses exceeding RMB600 per ton. The industry's overall profitability continues to deteriorate, significantly intensifying production pressures for enterprises.

Amid sustained cost pressures, routine maintenance schedules for industry facilities are proceeding as planned. Some plants originally scheduled for restart have delayed operations, while others have reduced production or lowered operating rates. In the short term, the industry's capacity utilization rate is projected to decline to 50.86%, a significant 5.8 percentage point drop compared to the same period last year, further contracting total industry supply.

Hubei, as the core production area for monoammonium phosphate, has seen extensive adjustments in industry operations: several large enterprises are undergoing rotational maintenance; two medium-sized enterprises have halted production for maintenance; and some smaller-capacity enterprises have not yet resumed operations. The regional industry capacity utilization rate has declined by over 6 percentage points. The Southwest production area is simultaneously operating at reduced capacity. Some factories in Guizhou have halved production, while others in Sichuan have scheduled maintenance in the near term. The regional industry capacity utilization rate has declined by 5.4 percentage points since early December.

Overall, raw material sulfur prices will remain elevated due to high international prices, tightening supply, and stable essential demand, providing solid cost support for monoammonium phosphate (MAP). MAP plants still hold some pending orders, and with reduced market supply and underlying essential demand, prices retain upward momentum.

As an integrated internet platform providing benchmark prices, on December 11th, the benchmark price of monoammonium phosphate according to SunSirs was 3750.00RMB/ton, an increase of 1.63% compared to the beginning of the month (3690.00 RMB/ton).

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