SMM March 14 News:
This week, as a key raw material for iron phosphate, the price of industrial-grade MAP saw a significant increase, with its ex-factory price once surpassing the 6,500 yuan/mt threshold. This price surge was mainly driven by the substantial increase in fertilizer demand during the spring farming season, which in turn pushed up the cost of iron phosphate. Meanwhile, the demand in the iron phosphate market is gradually recovering; however, the supply of industrial-grade MAP remains tight, with inventory levels staying low.
Under these circumstances, iron phosphate enterprises are facing considerable challenges in procuring industrial-grade MAP. However, as it is currently mid-month, most iron phosphate enterprises typically conduct business negotiations at month-end or the beginning of the month. Therefore, as of now, the price of iron phosphate has not shown a significant increase. The current market demand remains relatively weak, which has also posed certain obstacles to price adjustments.
SMM believes that the volatile price of industrial-grade MAP not only tests the procurement strategies of iron phosphate enterprises but also impacts the stable development of the entire industry chain. With the continuation of the spring farming season and the further recovery of demand in the iron phosphate market, the future price trend of industrial-grade MAP and its subsequent impact on the iron phosphate industry are worth continuous attention.
SMM New Energy Research Team
Cong Wang 021-51666838
Rui Ma 021-51595780
Disheng Feng 021-51666714
Yanlin Lü 021-20707875
