Weekly Review of Liquid Ammonia: Prices in Key Regions Continue to Rise

Thread Content

Weekly Review of Liquid Ammonia: Prices in Key Regions Continue to Rise Author/Source: Date: 2016-11-25 Clicks: 14 This week, prices of liquid ammonia in key regions of China continued to rise, with the increase ranging from 50 to 150 yuan. In the Hebei region, prices rose by around 90 yuan. Affected by environmental regulations restricting production, some enterprises in Shijiazhuang continued to reduce their output on top of the previous production cuts. Additionally, there was ongoing demand from some end-users in the Northeast. Although transportation was slightly delayed due to fog, prices in this region continued to rise modestly ； In northern Shandong, the prevailing upward price range is 90–200 yuan per ton. In Dezhou, some companies have shifted their urea production to liquid ammonia, which has led to a slightly slower increase in prices. In Linyi, the prevailing upward price range is around 150–190 yuan per ton; prices were previously driven up by demand from northern Jiangsu ； In the Jiangsu region, prices have generally risen by around 80-160 yuan. In the early part of the week, supply was tight in northern Jiangsu, leading to a sharp rise in prices; later in the week, delivery slowed down due to road conditions ； In the Anhui region, the price has continued to rise slowly as in the previous period; this week it increased by 20 yuan on a steady basis, with some companies releasing large amounts of ammonia due to maintenance work on their urea production facilities ； In the Henan region, the mainstream upward price is around 100 yuan; demand from end-users is fairly good. Some facilities in northern Henan are under maintenance, and due to snowfall in the later part of the week, the rate of price increase has slowed down ； Prices in the Two Lakes region continued to rise; plants that had been under maintenance resumed operations one after another. Driven by demand for phosphate-based fertilizers, prices in this region increased by around 100-120 yuan this week. Currently, the mainstream acceptance price in Shijiazhuang, Hebei is 2,330–2,340 yuan per ton, while the ex-plant acceptance price in Cangzhou is 2,500 yuan per ton ； In northern Shandong, the cash price is 2410–2560 yuan per ton, while in the Linyi area, the price upon delivery after acceptance is 2650–2680 yuan per ton ； In Jiangsu province, the prevailing price for goods delivered upon acceptance in northern Jiangsu is 2650–2700 yuan per ton, while in southern Jiangsu it is 2750–2780 yuan per ton ； In northern Anhui, the prevailing price for acceptance is 2,490–2,500 yuan per ton, while in southern Anhui the prevailing cash price is 2,560 yuan per ton ； The prevailing price in the Henan region is 2,300 yuan per ton, while in the Shangcai area it is 2,400 yuan per ton ； The prevailing price of liquid ammonia in Hubei is between 2,600 and 2,670 yuan per ton, while the actual transaction price ranges from 2,550 to 2,600 yuan per ton ； The prevailing price in Hunan is around 2,700 yuan per ton. 　　Future outlook: Supported by costs, the liquid ammonia market is not at risk of a significant decline in the short term; however, strong resistance from end-users may prevent prices from rising further significantly. Pay special attention to the impact of environmental inspections in Hebei region on the production of liquid ammonia and related industries, as well as the development of the phosphate fertilizer market in the Two Lakes region. (China Agri-Media)