Drone-Grade Monopotassium Phosphate (MKP) Market Weekly Report | Week 36, 2026
|
No. |
Raw Material |
Average Price (RMB/MT) |
Weekly Trend |
|
1 |
Yellow Phosphorus |
27,800–28,000 |
↗ Rising |
|
2 |
Solid Sulfur |
7,400–7,800 |
↓ Declining |
|
3 |
Hot-process Phosphoric Acid |
8,400–8,600 |
↘ Slightly Down |
|
4 |
Wet-process Phosphoric Acid |
8,200–8,400 |
↓ Declining |
|
5 |
Potassium Chloride |
3,148 |
↘ Slightly Down |
|
6 |
48% Potassium Hydroxide |
3,209 |
→ Stable |
Trend indicators: → Stable | ↘ Down | ↓ Declining | ↗ Rising
This week, drone-grade Monopotassium Phosphate (MKP) prices continued to operate at relatively low levels, while cost-side support weakened noticeably.
Sulfur prices have continued to decline over the past month, with the downward trend accelerating toward the end of August. The main pressure came from increasing port inventories, which exceeded 950,000 tons, combined with cautious buying sentiment among downstream users. Market activity remained relatively slow as buyers generally purchased only according to immediate demand.
In the yellow phosphorus market, producers attempted to raise prices, citing tight phosphate rock supply and environmental inspections. However, overall supply remained relatively stable during the wet season, while downstream acceptance of higher prices was limited. As a result, yellow phosphorus prices remained at relatively high levels but faced resistance from weak demand.
Affected by falling sulfur prices, transaction prices for wet-process phosphoric acid softened, and producers gradually lowered their offers. On the demand side, autumn fertilizer preparation has progressed slowly, with downstream buyers mainly purchasing based on immediate requirements.
Overall, weaker cost support combined with ongoing supply-demand pressure continued to weigh on the MKP market, keeping prices under pressure.
As of August 31, yellow phosphorus prices showed a slight rebound.
Some producers attempted to increase prices due to tight phosphate rock supply and environmental inspections, while lower-priced material became less available. Meanwhile, several producers in Weng'an and Fuquan, Guizhou Province resumed production at multiple electric furnaces, resulting in a slight increase in supply.
However, downstream buyers remained cautious toward higher prices, and purchasing activity was relatively weak. New orders were limited.
In the short term, the yellow phosphorus market is expected to remain relatively stable at a high level.
As of August 31, sulfur prices continued to decline significantly, falling to around RMB 7,500/MT.
Port inventories continued to increase, exceeding 950,000 tons. Concerns about further price declines caused downstream buyers to remain cautious, with most purchases limited to immediate production needs.
As holders faced increasing pressure to move inventories, market prices continued to decline.
In the short term, although inventories remain high and prices have weakened, there has not been a significant increase in new sulfur supply. Future market developments will require further observation.
As of August 31, hot-process phosphoric acid prices recorded a slight decline.
Although yellow phosphorus prices remained relatively high, downstream demand was weak and new orders were limited. At the same time, declining wet-process phosphoric acid prices encouraged some downstream users to switch to more cost-effective alternatives.
This reduced demand for hot-process phosphoric acid and increased inventory pressure on producers, leading some suppliers to lower prices in order to stimulate sales.
In the short term, the market is expected to continue operating under relatively weak conditions.
As of August 31, wet-process phosphoric acid prices declined slightly.
The significant drop in sulfur prices weakened cost support, while actual transaction prices softened and producers gradually lowered their quotations.
The market is expected to remain stable to slightly weaker in the short term.
As of August 31, potassium chloride prices continued to decline.
Port inventories reached approximately 3.75 million tons, representing a significant year-on-year increase and indicating ample market supply.
Downstream compound fertilizer producers continued to hold relatively high inventories of finished products and sufficient raw material stocks. With market sentiment remaining weak, most buyers focused on consuming existing inventories rather than placing significant new orders.
In the short term, the potassium chloride market is expected to remain under pressure.
As of August 31, the average price of 48% potassium hydroxide remained largely unchanged from the previous week.
Continued weakness in potassium chloride prices limited cost-side support. Meanwhile, overall market supply remained sufficient, with increased availability in some regions.
Weak downstream demand and relatively quiet trading activity continued to affect market sentiment.
In the short term, the market is expected to fluctuate within a relatively stable but weak range.
This week, several key raw material prices experienced a phased decline, resulting in lower cost support for drone-grade MKP production.
However, MKP prices are already operating at relatively low levels, and the extent of any further downside will depend on actual raw material transaction prices and future market developments.
On the demand side, the market remains in a traditional seasonal slowdown, with limited support from large-scale purchasing activity. Overall trading sentiment remains relatively cautious.
In the short term, the drone-grade MKP market is expected to remain under pressure, with market participants closely monitoring changes in raw material prices and downstream demand.