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Urea prices fluctuate; ammonium nitrate is in high demand. Author/Source: China Fertilizer Network. Date: June 21, 2019. Clicks: 4. Since urea prices saw a tentative increase last week, they have remained stable this week; however, prices at some companies in Shandong and other regions have varied, with some increases and some decreases. This is mainly due to the individual cash flow situations of these companies. Demand remains relatively weak, and there is no significant positive impact from demands in the industrial and agricultural sectors. Currently, the purchase price of urea by compound fertilizer manufacturers in Linyi, Shandong, is around 1930–1940 yuan per ton, a decrease of 10–20 yuan compared to last Friday. The urea market is experiencing fluctuations in demand, which remains weak. Recently, ammonium sulfate seems to have seen a slight improvement in demand; according to companies producing ammonium sulfate, there has been an increase in inquiries from downstream customers over the past two weeks. The price of ammonium sulfate has risen by 20–30 yuan. Downstream suppliers report that the price of 55% ammonium sulfate powder produced by small factories in Hubei has increased slightly to 1970–1980 yuan, while large factories charge around 2020–2050 yuan. Some companies say they have orders scheduled until late July and have temporarily stopped accepting new orders. The ex-plant price of 55% ammonium sulfate produced by large manufacturers in Sichuan remains stable at 1,950 yuan; the actual ex-plant price for lower-quality products stays around 1,880–1,900 yuan. For now, these companies are still in the process of implementing these prices, and new orders are showing a slight improvement. Although demand for monoammonium phosphate in autumn is showing some signs of increase, has the market for this product truly seen improvement? Will the slightly higher quote really hold? The specific situation needs to be analyzed on a case-by-case basis. The operating rate of Unit 1 is around 50%, and the annual maintenance is still in progress. Recently, the operating rate of ammonia production facilities has remained low. Some enterprises are undergoing annual maintenance, and since this month is the \"Safety Production Month,\" the overall operating rate of ammonia production facilities will be affected by these factors. Some large factories in Hubei have reduced production, while some small and medium-sized enterprises have stopped operations. Large factories in Sichuan continue to limit production, and large factories in Anhui are carrying out rotational maintenance. In some areas, enterprises that have been shut down for a long time still show no signs of resuming operations. The operating rate of monoammonium is expected to gradually increase around the end of the month. Demand has improved slightly, but the path ahead remains difficult. Since last week, companies producing ammonium compounds have said that there has indeed been an increase in inquiries from downstream clients. Industry insiders have added that large composite fertilizer manufacturers are showing increasing interest in making purchases at present; some large factories in Shandong have already started ordering goods, though the volume is still small, around a few thousand tons. Although demand is starting to increase in the autumn, it is reported that some downstream compound fertilizer manufacturers are still waiting to see how things develop. This is mainly because some of these companies have just held or are about to hold meetings with their compound fertilizer distributors; they lack sufficient funds at the moment and therefore hesitate to purchase raw materials. Other companies have large inventory levels of raw materials, and some of the potassium fertilizers and ammonium fertilizers they intended to purchase are still on their way, resulting in high inventory pressures and making it difficult to carry out new purchases for now. Apart from large enterprises, small and medium-sized businesses across the region currently have no strong intention to place purchases and are waiting to see what happens. Therefore, overall, the real autumn demand is still on the way. Raw materials provide limited support to costs. Recently, the price of phosphate rock has remained relatively stable; the price at docks or ports for phosphate rock with a 28% purity in Hubei is 390 yuan, while the price in Guizhou is about 30 yuan lower. These prices are slightly lower than those of last year. Recently, the price of liquid ammonia has declined slightly, mainly due to an increase in the amount of ammonia released by manufacturers. Currently, the prevailing price for liquid ammonia in Hubei when delivered with invoices is between 2800 and 2870 yuan, which represents a decrease of 100-200 yuan compared to the beginning of June. Recently, the inventory of sulfur at Sulfur Port has been high, exceeding 1.7 million tons. Demand from downstream markets is not satisfactory. The price of granular sulfur at ports such as the Yangtze River Port and Fangcheng Port is around 970 yuan. The prices of sulfur produced by Puguang at the Wanzhou Port and Dazhou plant areas remain stable, at 990 yuan and 890 yuan respectively. In summary, although monoammonium is showing a trend of growing popularity, there are also certain difficulties in its price increase. In the short term, the price of monoammonium should remain stable; although companies may raise their quotes slightly, there should be limited trading volume at these new prices in the short term. (Zhao Hongye)