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Who is driving the frequent fluctuations in the liquid ammonia market? Author/Source: Date: 2016-09-06 Clicks: 11. As can be seen from the price trend chart, the prices of major liquid ammonia markets in China remain in a state of continuous fluctuation, showing a wave-like pattern. Hebei and Shandong experience the most frequent fluctuations. There are various reasons for the ongoing volatility in the market, and Gold Island will analyze this from the following aspects. Firstly, in terms of the operation of these facilities, among the enterprises monitored by Gold and Silver Island, there are roughly over a dozen facilities whose operation is unstable. This leads to fluctuations in local supply levels; and when demand is low, such supply fluctuations have a direct impact on market trends. Secondly, in terms of the export volume of liquid ammonia, for companies that produce urea as a by-product, the export volume of liquid ammonia is adjusted accordingly; when the urea market is performing well, the export volume of liquid ammonia decreases ； Additionally, the price of liquid ammonia is also related to that of methanol; when the price of methanol continues to rise, methanol production increases, which leads to a decrease in the export volume of liquid ammonia, and this in turn may drive up prices in the market. Therefore, in the absence of positive news regarding current demand, changes in the export volume of liquid ammonia have a certain impact on understanding the state of market fluctuations. Again, considering liquid ammonia itself, it is soluble in water, and upon dissolving in water it forms an alkaline solution ； Liquid ammonia is typically stored in pressure-resistant steel cylinders or tanks, and it must not be stored together with substances such as acetaldehyde, acrolein, and boron ； Liquid ammonia is widely used in industry; it is corrosive and volatile, and heat should be avoided during transportation as well as the use of fire and flames. The incidence of chemical accidents involving it is quite high. Therefore, liquid ammonia is generally purchased locally, and the storage volume should not be too large. Therefore, both the manufacturers’ inventory levels and downstream purchasing volumes affect price fluctuations. It can be seen from this that to understand market conditions, one must start by examining the operation status of facilities, the companies’ export performance, as well as the inventory levels of manufacturers and downstream parties ； The ongoing volatility in market conditions is also related to these factors. By keeping these key factors in mind, market activity will further increase.