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Weekly Review of Liquid Ammonia in the Second Week of August – Author/Source: Date: 2016-08-16 Clicks: 10. Prices in the main areas of China’s liquid ammonia market continued to drop significantly during this week; the biggest declines were observed in Jiangsu, Anhui, Linyi, and Hubei provinces, with weekly price drops ranging from 100 to 200 yuan. In other regions, the decline was around 50 to 80 yuan. Affected by the ongoing weakness in the urea market, urea manufacturers have seen a significant increase in the volume of liquid ammonia they sell in recent weeks. On the demand side, compound fertilizer manufacturers, due to falling prices of nitrogen, phosphorus, and potassium raw materials, have fewer orders; as a result, purchasing volumes of liquid ammonia in the Two Lakes region and Shandong province have dropped significantly, with low production levels as well. In the chemical industry sector, nitric acid and caprolactam production facilities in Jiangsu have been shut down or have seen a reduction in ammonia production; as a result of the subsequent G20 events, there has been a downward trend in bidding volumes and prices in Zhejiang. In the market, most people prefer to buy when prices are rising rather than falling. Traders face difficulties in making decisions amid a continuous sharp decline in prices; some goods start to incur losses during transportation. As a result, some traders choose to withdraw from the market and wait and see, which further exacerbates the negative sentiment in the market. Currently, the mainstream acceptance price in Shijiazhuang, Hebei is 1,670 yuan per ton, while in Hengshui it is 1,690–1,710 yuan per ton. The ex-plant acceptance price in Cangzhou is 1,760 yuan per ton ； In northern Shandong, the cash price is 1,690–1,750 yuan per ton, while in Linyi, the prevailing price for acceptance payment is 1,810–1,850 yuan per ton ； In Jiangsu province, the mainstream price for goods delivered with acceptance in northern Jiangsu is 1,810–1,820 yuan per ton, while the premium price is 1,960 yuan per ton. In southern Jiangsu, the mainstream price for goods delivered with acceptance is 2,050 yuan per ton ； The mainstream acceptance price in northern Anhui is 1,830–1,870 yuan per ton ； The prevailing cash price in the Henan region is 1,800–1,850 yuan per ton ； The prevailing price for liquid ammonia in Hubei is 2,000 yuan per ton; the actual transaction price is around 1,950 yuan per ton, with room for negotiation on the price ； The mainstream price in Hunan is around 2,080 yuan per ton. Future outlook: The liquid ammonia market is affected negatively by urea, with steady increases in liquid ammonia production over the past few weeks. Coupled with a slight decline in demand in regions such as Jiangsu, Anhui, Hubei, and Zhejiang, as well as negative factors like temporary shutdowns of some end-users during the G20 period, confidence in the liquid ammonia market remained weak, leading to continuous price drops. To date, liquid ammonia prices in most regions have dropped to record lows; going forward, considering cost considerations, some urea manufacturers may reduce their ammonia output. At the same time, the market in Hubei is in a state of chaos, with low activity at the retail level; fertilizer manufacturers are producing large amounts of ammonia, and prices are likely to continue to fall. As a result, companies may reduce their production volumes to cope with this chaotic market situation. Considering the significant decline in demand from the Zhejiang area around August 20, the Jiangsu and Anhui regions may adopt measures such as price cuts or reduced production volumes to counteract the negative factors that will arise later on. Overall, the liquid ammonia market remains dominated by a sluggish trend; however, cost factors may slow down the further decline in prices. Next week, attention will be focused in Jiangsu on the restart of nitric acid production facilities by end-users. (China Agri-Media)