Thread Content
As National Day approaches, the synthetic ammonia market continues to show an upward trend. Author/Source: JLNCC. Date: 2019-09-27. Clicks: 1. The message “Please give me a national flag” has gone viral on social media, contributing to the growing atmosphere of celebration for the country’s 70th anniversary. This year, synthetic ammonia also took advantage of the last week before National Day, with the market prices continuing to rise. The main reasons for this are as follows: First, although there were traffic restrictions on highways during the Mid-Autumn Festival, their impact was minimal. The manufacturer clears its inventory in advance, so production and sales can be met on the same day, leaving no inventory pressure. II. Downstream factories are stocking up, and manufacturers can ship goods smoothly; although prices continue to rise in the mainstream market, this does not affect enthusiasm for making purchases. III. Environmental protection efforts have increased compared to previous years. Notice on Issuing an Orange Warning for Severe Air Pollution: It is reported that the synthetic ammonia production enterprises in Jincheng, including Lanhua Yanghua, Lanhua Clean Energy, Lanhua Chemical Branch, Lanhua Tianyue, Jinmei Tianyuan, Jinmei Jinxiang Coal Chemical, Tianze Group Chemical Plant, Tianze Group Gasification Plant East Facility, and Tianze Yongfeng’s urea production unit (including 7 gas generation furnaces), as well as Gaoping Chemical Company, have suspended operations. Others have production limits of 30%, 50%, etc., respectively; the same is true in Henan, where it is stated that many downstream factories are operating with a 30% production limit. At present, there is no situation in the market where \"light-limit urea leads to an increase in synthetic ammonia production\"; rather, production is being restricted within the synthetic ammonia and urea production systems, resulting in a growing shortage of supply in the market. IV. Vehicle restrictions: All vehicles used for picking up goods must meet the National V emission standards; diesel engines meeting National V standards can be used only if their relevant documentation has been approved by environmental protection authorities after April 10, 2017. All gas-powered vehicles, classified as National IV vehicles or those that have been modified to meet National V standards, are prohibited from operating during weather conditions with severe pollution alerts. V. As manufacturing companies reduce production due to the shutdown of multiple plants, there is a strong tendency for price increases in those manufacturers with low export volumes and in regions where supplies are scarce. As of September 25, according to Jinhua Chuang’s statistics, the mainstream prices in some key production areas were as follows: 2,840–2,960 yuan per ton in cash in Shandong ； Linyi mainstream 2950-3000 acceptance ； Hebei: 2,850–3,100 yuan/ton upon acceptance ； Wen’an: 2,980 yuan per ton in cash ； Cangzhou: 2,960 yuan per ton in cash ； The prevailing price in Shanxi is 2,500–2,600 yuan per ton in cash ； Anhui 2880-3000 acceptance ； 2980 in cash for southern Anhui ； Jiangsu 2950-3300 acceptance ； Henan 2780-2850 acceptance ； Around 2,880 in Hubei for acceptance ； 2850 in cash in Hunan ； Northeast 3050-3100 in cash ； Fujian 3300-3330 in cash ； 2500-3100 in cash in Inner Mongolia ； Shaanxi: 2,300–2,500 yuan per ton in cash ； Sichuan: 2,500–2,700 yuan per ton in cash.