On September 12th, domestic liquid ammonia reversed last week’s upward trend and turned into a decline. According to the Commodity Market Analysis System of the Business Society, the main production area in Shandong fell by 1.70% daily, with a trading center in the range of 150 to 200 yuan/ton compared to Friday. At present, the mainstream quotation in Shandong region is between 3600-3800 yuan/ton.
On the supply side, the supply in the main production areas has increased, and some faulty enterprises have resumed operation, resulting in increased supply pressure. Since September, the import supply has only increased without decreasing, which has had an impact on the liquid ammonia market in the region. Large factories in Shandong, Hebei, Henan, Shanxi and other regions have all lowered their prices, with most of the price reductions today being at 100 yuan/ton.
On the demand side, downstream demand is relatively stable. However, due to the impact of urea testing, export pressure has increased, and market sentiment has slightly fluctuated. The current industrial demand remains strong.
Prediction: Liquid ammonia analysts from Business Society believe that the supply and demand pattern of the ammonia market will continue to shift from tightening to easing in the short term, and prices will continue to be weak in the near future.