The Water Soluble Fertilizer (WSF) market showcased a downward trend in the Indian and China markets in May 2023. As per ChemAnalyst, the prices of WSF fell by a significant margin of around 10% in India and 13% in China. Procurement orders from the downstream WSF industry showed a deep contraction and failed to gain momentum in Asian countries. However, the prices of WSF showed an inclining trend in American Market during this period due to the rise in prices of Natural Gas driven by supply issues.

In India, pessimistic market sentiments continue to prevail in the fertilizer industry. There has been no indication of increasing demand for WSF in the current period, and the smooth inflow of material consequently led to oversupplies in the country. Further decline in the price of Mono Ammonium Phosphate (MAP) in exporting country China and eased freight charges contributed to the price trend.

In like manner, the prices of WSF showed a downward trajectory in China market backed by declining prices of feedstock Ammonia. Additionally, fluctuating Crude Oil and Coal prices pressurized the market participants to keep the prices on the lower side. Further, as the National Bureau of Statistics indicates, the manufacturing PMI has sloped to 48.8% in May 2023 from 49.2% in April 2023.

Overall, the market situation of WSF in Asian countries remained bearish during May 2023, despite efforts to manage the demand-supply gap. Diminished demand from the downstream fertilizer industry coupled with healthy supply paved the way for the narrow- demand-supply gap.

In contrast, the prices of WSF, including MAP, increased in the USA despite a fall of USD 63 per MT in feedstock Ammonia prices and low demand from other importing North American countries like Canada. The major driving factor behind the increased MAP prices in the USA market was the inclining prices of Natural Gas and Crude Oil. Fluctuation in prices of upstream products Crude oil impacted the production activities and consequently influenced the price. Considering data from the US Bureau of Labor and Statistics, it was observed that the nation's Consumer Price Index remained stable this month with a marginal rise of 0.1%.

As per ChemAnalyst, the prices of WSF will also showcase a declining trend in Asia and American markets in the forthcoming month of June. The demand outlook may be pessimistic, and there is no indication of increasing demand from the downstream industry. Further, declining prices of feedstock material Ammonia will also contribute to the declining prices. However, the fluctuations in prices of Natural Gas and Crude Oil may affect the production rate and lead to a rise in the prices of MAP.