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Tight ammonia supply high and volatile prices
Source:China Fertilizer Network   Author:Jianghai   Time:2015-05-29   Read:554second  

Since May, ammonia prices show high and volatile movements, local slight fluctuations, usually in the range from 100 yuan (t price, the same below) it. At present most of the ammonia factory price in 2200 ~ 2750 yuan, the relatively low price of Hebei, Zhejiang, Anhui, Fujian and other places relatively high prices, including Zhejiang since less ammonia factory, the factory price of individual enterprises is as high as 3100 yuan , a national price highlands.

On the plus factors, support the current price of ammonia are mainly two things: First, the downstream demand better. Ammonia numerous downstream industries, mainly fertilizer, metallurgy, refrigeration, etc., is currently in the agricultural fertilizer season, fertilizer demand is more robust, more stable demand in other industries, the overall downstream demand better.

Second, market strength to ease the ammonia urea market supply pressure. Into the middle of May after the price increases, demand-driven agriculture, under a variety of factors such as rising international urea prices, domestic urea market's big rally, the market leader Shandong urea prices back on the 1700 yuan mark, a record second half of 2013 since a new high. Currently urea market in the recent years, a rare strong sales situation, not only prices, but also the local supply is tight. In this situation, most of the fertilizer manufacturers will intensify efforts to produce more urea, ammonia market to ease the supply pressure.

But the ammonia market there are two negative factors, restricting the ammonia prices higher. First, coal prices lower. In China, the vast majority of the nitrogen fertilizer business are based on coal as raw material. This year, due to the economic slowdown, sluggish demand, the coal market downturn, lower prices again and again. Bohai Rim coal price index, May 20 to close at 414 yuan, hit a record low prices of October 13, 2010 released since. The second is currently at a relatively high ammonia prices. Ammonia prices rose earlier this year in the urea market, in March, when there have been a wave of sharp rise in prices, continue to rise during April, ammonia prices have now entered a relatively high range, upward momentum weakened.

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