The operators are expressing frustration over the sharp increase in the price of monoammonium phosphate. Recently, China Chemical Industry News reported that rising prices of sulfur and other raw materials, along with increasing international fertilizer prices, have driven domestic monoammonium phosphate prices upward. The situation has escalated rapidly—monoammonium phosphate is being exported in large quantities, leaving very little in the domestic market. As a result, its value has skyrocketed, causing significant pressure on downstream compound fertilizer manufacturers. As a key raw material for compound fertilizers, the surge in monoammonium phosphate prices has dramatically increased production costs for these companies, making their operations increasingly difficult. Reporters have frequently heard complaints from local compound fertilizer firms about the "crazy" price hikes. It's reported that by September 5, the price of monoammonium phosphate had risen from 1,900 yuan per ton in June to 2,400 yuan per ton. Some enterprises even faced prices as high as 2,650 yuan per ton for certain grades. Despite these soaring costs, many companies still struggle to secure supplies due to the massive export demand. With the peak season for autumn fertilization approaching, many small and medium-sized compound fertilizer companies have been forced to halt production. Large-scale producers are either operating at reduced capacity or producing less than what they sell. Hebei Hengshui Tianfeng Fertilizer Co., Ltd., a relatively new company established just five years ago, has been hit hard. Its general manager, Shi Guozheng, told reporters that the price of monoammonium phosphate has risen almost every month since June, by around 200 yuan per ton. He explained that the reason was the huge export volume. In July alone, the country exported 420,000 tons of monoammonium and diammonium phosphate. From June to August, this accounted for half of the total domestic production in those three months. Because there’s no stockpiling ahead of time, the company now faces daily shortages. Millions of yuan worth of raw materials are going overseas, but not to them. With the start of the autumn fertilizer season, the factory can only run one shift instead of two, cutting output by half. Inventory is down to just dozens of tons, and without supply, they are forced to stop production altogether. Shi said it’s not economical to switch to DAP instead of monoammonium phosphate. He added that several nearby fertilizer plants are also struggling due to the same issue. Even larger companies are feeling the strain. A director at a major fertilizer plant in Shandong stated that the current monoammonium phosphate price is too high, forcing them to shut down for over 40 days. During the peak season for winter crops, they can only produce small batches, but the cost per ton of compound fertilizer has gone up by 300 yuan. They have to raise prices, but farmers are unwilling to accept the increase. “We’re stuck between a rock and a hard place,” he said. Henan Lianxinxin’s procurement staff mentioned that the price they can get is 2,400 yuan per ton, but even with payments made, getting the goods is challenging. Salespeople are pushing for exports, and while the company anticipated the price rise and stocked more than 10,000 tons, their production is still limited. Their supplier relationships with major producers like Yuntianhua help, but delivery is still constrained. Still, they manage to secure a few thousand tons at a time. Online reports show that due to the high global prices of monoammonium phosphate, some producers are openly stating they will only export, while others refuse domestic orders until October. Many companies are now prioritizing exports, and daily quotes continue to climb. Some industry insiders noted that due to the export-driven price surge, some domestic fertilizer companies may reduce the phosphorus content in their formulas to cut costs. This could lead to fewer high-phosphorus compound fertilizers available on the market. Farmers, facing higher prices, might reduce their use of compound fertilizers, switching to alternatives like ammonium bicarbonate or calcium magnesium phosphate as base fertilizers. This shift could significantly impact agricultural practices this season.

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