Qingdao, China: In July 2024, the Water Soluble Fertilizers (WSF) market witnessed a significant price increase in North America and China, driven by heightened demand from agrochemical enterprises and adverse weather conditions. These weather challenges disrupted supply chains, creating an imbalance between supply and demand. Consequently, the market experienced bullish sentiments as the supply struggled to meet the rising demand, leading to a notable uptrend in Water Soluble Fertilizers prices.

In July 2024, the Water Soluble Fertilizers market in China experienced a modest increase of 0.95%, reaching USD 526/MT (FOB-Qingdao). This price rise of Water Soluble Fertilizers was primarily driven by heightened demand from downstream agrochemical enterprises, spurred by the plantation season and the mid-crop season for various crops. However, the market faced significant challenges due to Typhoon Gaemi, which caused severe disruptions. The typhoon led to evacuations, deadly mudslides, and flooding across the Philippines, Taiwan, and parts of southeast China, severely impacting the supply chain for Water Soluble Fertilizers. As a result, the demand for Water Soluble Fertilizers remained unmet, contributing to the price increase. On the other hand, the feedstock markets for Ammonia and Phosphoric Acid experienced a decline in prices during July, which reduced the production costs for Water Soluble Fertilizers. Under normal circumstances, this reduction in production costs might have led to a decrease in Water Soluble Fertilizers prices. However, the increased demand for Water Soluble Fertilizers from the agrochemical sector, coupled with the supply chain disruptions caused by Typhoon Gaemi, kept the prices on an upward trend. Despite the potential for lower production costs, the market dynamics driven by demand and supply chain issues maintained the price incline.

The US market for Water Soluble Fertilizers experienced a bullish trend due to significant supply chain disruptions caused by the peak hurricane season. These disruptions led to a shortage of inventory, which was insufficient to meet the demand for Water Soluble Fertilizers from downstream agrochemical enterprises during the mid-crop season. As a result, market players increased their ex-quotations to reflect the supply-deficient scenario, driving up prices. This situation highlighted the vulnerability of the supply chain to natural disasters and the resulting impact on market dynamics. In addition to the supply chain issues, the feedstock market for Water Soluble Fertilizers showed mixed sentiments. Ammonia prices experienced a declining trend, which could have potentially eased some cost pressures. However, the phosphoric acid market followed an upward trend, providing support to the overall market scenario for Water Soluble Fertilizers. The contrasting trends in feedstock prices created a complex market environment, influencing the pricing and availability of Water Soluble Fertilizers. This combination of factors underscored the intricate balance between supply chain stability and feedstock market fluctuations in determining market outcomes.

ChemAnalyst anticipates a decline in water-soluble fertilizer prices in the upcoming weeks, primarily due to the approaching harvesting season. This period typically sees a reduction in demand from downstream agrochemical enterprises, as their need for fertilizers diminishes once crops are ready for harvest. Consequently, the market experiences a temporary surplus of these fertilizers, leading to a downward pressure on prices.

Sourec:chemanalyst.com