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Weekly Review of Liquid Ammonia in the Third Week of August – Author/Source: Date: 2016-08-22 Clicks: 4. The generally weak trend in China’s liquid ammonia market remained unchanged this week. Although, in the early part of the week, prices in northern Jiangsu rose against the trend due to the operation of nitric acid plants in Dafeng Haili and normal purchasing activities by Silbang, prices later declined as a result of resistance from intermediaries and end-users. In northern Shandong, prices saw slight increases in the early part of the week owing to production cuts at Mingshui and Lianmeng, but by the end of the week, prices also started to fall. In the liquid ammonia market, with weak demand from downstream sectors and the presence of low-priced supplies from surrounding areas, there is little support for continued price increases; therefore, a downward correction is inevitable. The Hebei region remains weak this week; although prices are already at low levels, inventory pressures have caused them to drop by another 30 yuan this week, with the cash price falling below the 1600 yuan/ton mark ； The Henan region remained weak this week. Although production decreased over the weekend, there was a noticeable increase in production in Huaixian at low prices. Additionally, equipment in Weihui returned to normal operation, and low ammonia prices from Hubei affected shipments. As a result, prices in this region continued to decline throughout the week ； The market in Anhui is currently weak; due to transportation restrictions following the G20 summit, manufacturers are being cautious. Today, as there is a significant reduction in supply in southern Jiangsu, some traders have gone to Anhui to purchase goods, which has slightly alleviated the pressure on sales in that region ； The Hubei market remains exceptionally weak; faced with an extremely low price of 1,850 yuan per ton for acceptance, traders remain cautious in their operations. Currently, the mainstream acceptance price in Shijiazhuang, Hebei is 1,640 yuan per ton, while in Hengshui it is 1,660–1,680 yuan per ton. The ex-plant acceptance price in Cangzhou is 1,780 yuan per ton ； In northern Shandong, the cash price is 1,740–1,780 yuan per ton, while in Linyi the prevailing price for acceptance payment is 1,900–1,930 yuan per ton ； In Jiangsu province, the mainstream price for goods delivered with acceptance in northern Jiangsu is 1,900–1,910 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 2,100 yuan per ton ； The mainstream acceptance price in northern Anhui is 1,830–1,870 yuan per ton ； In the Henan region, the prevailing price for cash transactions is 1,650–1,750 yuan per ton; larger orders can be negotiated ； The prevailing price for liquid ammonia in Hubei is 2,000 yuan per ton; the actual transaction price is 1,850 yuan per ton or less, and the price is negotiable ； The mainstream price in Hunan is around 2,080 yuan per ton. Market outlook: As the G20 approaches, many enterprises in southern Jiangsu are undergoing maintenance or reducing production due to safety and environmental inspections. The Jiangyan plant remains shut down, Linggu has stopped one of its liquid ammonia production units for internal use, and Zhongyan Kunshan will cease operations starting today. With most traders shifting their activities to Anhui, this has had a positive effect on that market, which was under sales pressure; however, given the weak demand within the province, limited transportation and demand in Zhejiang ahead of the G20, and the sluggish market situation with no demand in Hubei, it is expected that the market in Anhui will continue to move forward cautiously. Other regional markets also lack significant positive factors to support them; only costs help to slow down the decline in corporate performance until it stabilizes. (China Agri-Media)