Price trend

This week (6.24-28), the liquid ammonia market in Shandong region slightly declined. According to the Commodity Market Analysis System of SunSirs, the main production area of Shandong experienced a weekly decline of 0.56%. As of June 28th, the mainstream quotation in Shandong region was between 2,800-3,000 RMB/ton.

Analysis review

The main reason was that the maintenance equipment had resumed work one after another, and the supply side had shown a loose performance. Coupled with the increase in urea conversion by manufacturers, the increase in ammonia production had dragged down the price of ammonia. During the week, some mainstream large factories in Shandong generally lowered their prices by less than 100 RMB/ton. Dealers tended to lower their shipments. Moreover, downstream procurement enthusiasm was not high, agricultural demand was gradually entering the off-season, industrial demand remained rigid, and the demand side was generally bearish.

Market outlook

Recently, agricultural demand procurement had slowed down, and industrial demand had just followed up on demand. However, there were rumors of maintenance by some manufacturers, and it is expected that supply will be tightened in the later stage. The possibility of a price rebound for liquid ammonia cannot be ruled out.

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