Weekly Review of Liquid Ammonia: Signs of Pullback in Some Areas

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Weekly Review of Liquid Ammonia: Signs of Pullback in Some Areas Author/Source: Date: 2016-12-02 Clicks: 24 This week, the liquid ammonia market in China showed signs of pullback in certain areas; prices declined noticeably in Hebei, Jiangsu, and Shandong. In the Central China region, prices remained relatively stable with a slight upward trend, driven by environmental inspections in Hubei, some demand for phosphate fertilizers, and low prices in Henan. Currently, the mainstream acceptance price in Shijiazhuang, Hebei is 2,320–2,330 yuan per ton, while the ex-plant acceptance price in Cangzhou is 2,550 yuan per ton ； In northern Shandong, the cash price is 2,430–2,560 yuan per ton, while in the Linyi area, the price upon delivery after acceptance is 2,620–2,650 yuan per ton ； In Jiangsu province, the mainstream price for goods delivered upon acceptance in northern Jiangsu is 2,540–2,550 yuan per ton, while in southern Jiangsu it is 2,700–2,750 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 2,600 yuan per ton ； The regional mainstream price in Henan is 2,400–2,450 yuan per ton ； The prevailing price for liquid ammonia in Hubei is between 2,650 and 2,720 yuan per ton, while the actual transaction price ranges from 2,600 to 2,650 yuan per ton ； The prevailing price in Hunan is around 2,750 yuan per ton. Future outlook: There is a strong bearish sentiment in Hebei and Shandong provinces. After today’s decline, Jiangsu’s prospects for the future also look poor. The overall supply volume in the Anhui region is on the rise; in the future, the direction of product distribution may be adjusted flexibly based on the conditions in surrounding markets. For now, the Hubei market is helping to maintain prices in Anhui. In the short term, North China, as well as Shandong and Jiangsu provinces, will continue to follow the aforementioned patterns in their behavior, while the Central China region is likely to see a steady rise with only slight fluctuations for now. In the later stage, pay attention to the impact of environmental inspections on the production rate in Hubei region.