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The highest bidder wins: Crystal ammonium nitrate reaches new highs again. Author/Source: China Fertilizer Network. Date: 2021-03-04. Clicks: 3. Recently, the prices of 72% crystal ammonium nitrate and 73% crystal ammonium nitrate have been rising steadily. After the Spring Festival holiday, the price of industrial ammonium nitrate remained around 3600–3750 yuan per ton. In recent days, it has been reported that the premium outlet price for 73% crystal ammonium nitrate by some manufacturers has risen to 3900–4200 yuan per ton; however, the volume of orders that can be accepted is limited. Orders placed at higher prices will be processed first. It is also noted that there is still industrial ammonium nitrate available in the market at an outlet price of 3600–3800 yuan per ton. Then why does the factory charge such a high price? Simply put, there are two points: one is that the factory owner provides the initial supply while controlling the orders received ； Second, if the downstream party is willing to pay a higher price for procurement, the company will choose to ship the goods first. In the short term, in the market for industrial ammonium nitrate, the one with the higher price gets the goods; so why is the price of industrial ammonium nitrate rising? On the one hand, fertilizers are generally used in regions such as Xinjiang in May; some large distributors in the market are passing on the industrial ammonium nitrate they purchased earlier to smaller distributors. There are also some distributors who did not stock up in advance or only had a limited amount of such fertilizer, so they will place orders for purchases in the near future. However, with limited available stock at present, it is only natural for the price of industrial ammonium nitrate to rise. On the other hand, the special circumstances of this year’s market conditions have indirectly led to an increase in the price of industrial ammonium phosphate. This year, exports of ammonium phosphate have surged, resulting in a higher production volume of granular form of this product. Companies prefer to use phosphoric acid for producing such granules, which has reduced the production of industrial ammonium phosphate to some extent; it has also led to a decrease in the production of ammonium phosphate with lower concentrations, such as 52% powdered ammonium phosphate. As a result, the supply of industrial ammonium phosphate is tight, and it is inevitable that its price rises when demand remains high. Industrial monoammonium prices are high; could agricultural monoammonium reach new highs? Currently, the ex-factory price of 55% powdered monoammonium nitrogen in the country is around 2400–2600 yuan. This week, the increase in the price of monoammonium nitrogen has slowed down; most companies have maintained stable prices, with only a few small manufacturers raising their prices. Some companies have still suspended setting prices, planning to announce new prices in mid-March. The industry observes that in recent times, downstream compound fertilizer manufacturers and export traders have become more cautious; their willingness to accept high prices is low, and demand has slowed down. As a result, the pricing of ammonium phosphate by factories and domestic traders remains relatively stable for now. However, with spring plowing approaching in China, there is still demand for raw ammonium phosphate, and some smaller and medium-sized compound fertilizer manufacturers still intend to purchase it. The ongoing rise in international prices of ammonium phosphate indicates that there is still a certain level of demand. The supply of monoammonium nitrate remains tight. The pending orders for granular monoammonium nitrate held by companies can be fulfilled until the end of May; recently, there has also been an increase in pending orders for powdered monoammonium nitrate, with some companies able to meet these orders until the end of March. A few companies that produce high-purity monoammonium nitrate in smaller quantities can fulfill their pending orders until April. Just last week, the ex-plant price of 60% powdered monoammonium nitrate in Hubei rose twice to 2,900 yuan, although deals are currently being made at around 2,800 yuan. After a decline that lasted over a week, the price of raw sulfur has started to rise in recent days. This is mainly due to the stable pricing at Puguang, as well as the continued increase in the contract prices for March in Qatar and the UAE. Market confidence has improved, and purchasing intentions on the part of downstream users have also increased. Currently, the price of granular sulfur at the Yangtze River port is around 1460 yuan, while the prices at the Wanzhou port and Dazhou plant of Puguang are 1520 yuan and 1390 yuan respectively. This provides some support for the cost of ammonium sulfate as well. In summary, the price of industrial ammonium nitrate is likely to continue rising. Although agricultural ammonium nitrate may also see further increases, the momentum behind such increases is somewhat slower. It is expected that prices of ammonium nitrate will remain stable in the short term, with only minor upward fluctuations possible. (Zhao Hongye)