Daily Report on Liquid Ammonia: China’s liquid ammonia market remains stable as investors wait and observe

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Daily Report on Liquid Ammonia: China’s liquid ammonia market remains stable amid cautious sentiment Author/Source: Date: 2016-10-12 Clicks: 13 China’s liquid ammonia market is staying stable as firms adopt a cautious approach. After an initial upward trend in the Shandong region, most players remain cautious; with no significant increase in demand from end-users and low prices in the Hebei region, companies also continue to wait and see. Currently, the prevailing acceptance price in Shijiazhuang, Hebei is 1,850 yuan per ton, while the factory acceptance price in Cangzhou area is 1,950 yuan per ton ； Northern Shandong: 1,920–1,990 yuan/ton in cash ； In Jiangsu province, the mainstream price for goods delivered upon acceptance in northern Jiangsu is 2120–2210 yuan per ton, while in southern Jiangsu it is 2250–2280 yuan per ton ； In northern Anhui, the prevailing price for acceptance is 2,030–2,060 yuan per ton, while in southern Anhui the prevailing cash price is 2,080 yuan per ton ； In the Henan region, the prevailing price is 1,850–1,920 yuan per ton; in a few cases it is 2,000 yuan per ton ； The current market price for liquid ammonia in Hubei is 2,200 yuan per ton, while the actual transaction price is 2,100 yuan per ton; the price is negotiable ； The prevailing price in Hunan is around 2,300–2,320 yuan per ton. 　　Future outlook: Supported by the continuous rise in coal prices, the liquid ammonia market remains at relatively high levels due to cost pressures. At the same time, weak demand from end-users is an undeniable fact; although regions such as Shandong have managed to raise prices due to tighter supply in those areas, sales pressure remains high in most regions. Sales for urea manufacturers are sluggish; some companies in Central and East China plan to reduce urea sales and increase ammonia sales, so pressure on the liquid ammonia market will remain in the future. It is expected that in the Central China region, especially in places such as Hubei, prices may face the risk of a decline, either explicitly or implicitly, as market supply increases; the situation in other regions is also not very optimistic. (China Agri-Media)