Ammonia Market Volatility frequently, after experiencing crazy rise in November, the market began to show a downward trend in December. And in December 17th and 18 on the two day, local market presents more than $100 / ton decline. In just a month's time, synthetic ammonia why so capricious".
Synthetic ammonia so capricious fuse is outside sales changes. Early crazy rise on the one hand thanks to the cost boost, on the other hand affected by the reduction in external sales. Export volume reduction on the one hand in part of the device operation instability, production reduction; on the other hand, methanol and urea prices, some manufacturers reduce ammonia and increase urea production, resulting in reduced sales. The recent two synthetic ammonia showed a sharp decline, but also with the necessary contact with foreign sales.
First of all, the environmental protection inspection efforts greatly, Shandong, Hebei, Hubei and Hunan, local environmental protection inspection efforts greatly, some manufacturers reduced urea, ammonia directly leads to the increase in foreign sales. At present, Shandong day foreign sales have been higher than the overall ammonia 3000 tons, some manufacturers, sales have doubled over the previous. However, environmental inspection also makes other downstream factory production, export volume increase, while demand is also accompanied by weakening. Domestic ammonia Market Supply and demand balance broken, oversupply contradiction once again aroused, Shandong market decline, after a chain reaction to the surrounding areas also have an impact. Secondly, the majority of domestic ammonia plant is in a normal state, in November the device has basically returned to normal operation, the market supply increased significantly. Again, from the downstream products, fertilizer lower overall operating load is low, compound fertilizer and phosphate fertilizer is also influenced by environmental effects, and industry demand is weak, although the rising market of caprolactam is obvious, but the limited supply, demand for liquid ammonia quality weak.
It is thus seen that the downside risk of the recent synthetic ammonia market is still, only exports in Shandong area increased more obvious, the latter involved in the export volume of environmental issues will be affected. Therefore, the industry to ammonia ammonia madness when avoiding risks, should focus on changes in the situation outside the enterprise sales.