Monthly Review of Liquid Ammonia: The liquid ammonia market is likely to remain stable with only slight fluctuations

Thread Content

Monthly Review of Liquid Ammonia: The liquid ammonia market is likely to remain stable with only slight fluctuations. Author/Source: Date: 2016-12-07 Clicks: 17 In November 2016, the Chinese liquid ammonia market continued to show strong upward momentum, driven by rising coal costs and restrictions imposed as part of environmental regulations; monthly price increases varied across different regions, ranging from 400 to 600 yuan. At the beginning of November, driven by soaring coal prices, the Shandong region continued to lead in terms of price increases, with weekly price rises of around 150-200. Prices in other regions also rose by roughly 100. In the Central China region, the rate of increase was slightly slower due to an increase in the amount of ammonia released by enterprises ； In mid-November, there was a significant shortage in the northeast region, which drove up prices in Hebei; in some cases, the weekly price increase reached around 250. In some enterprises in Henan, ammonia production came to an end, and prices in that region also began to rise in line with those in neighboring areas. In the Jiangsu region, companies are gradually carrying out maintenance work and reducing production, leading to a shortage of liquid ammonia and rising prices ； In late November, as the price of liquid ammonia continued to rise, resistance from end-users grew stronger; some smaller end-users reduced their purchases or took equipment into maintenance. However, supported by costs, the upward trend in liquid ammonia prices slowed down, but no significant decline has been observed yet. Currently, the prevailing acceptance price in Shijiazhuang, Hebei is 2,380–2,390 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 2,650–2,680 yuan per ton ； In Jiangsu province, the mainstream price for goods delivered upon acceptance in northern Jiangsu is 2620–2700 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 regional mainstream price in Henan is 2,350–2,400 yuan per ton ； The prevailing price for 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 2,750 yuan per ton. 　　Future outlook: Supported by end-use costs, it is unlikely that prices in the liquid ammonia market will drop significantly in the short term. Recently, environmental inspections have become increasingly strict, with a focus on changes in the operating rates of liquid ammonia and related downstream enterprises in various regions. It is expected that the liquid ammonia market will remain stable with only slight fluctuations in the near term. (Bai Chuan)