Price trend
According to the data monitoring of SunSirs, the ammonium chloride market rose in January. According to the monitoring of SunSirs, the price of dry ammonium chloride for agricultural use was 582.00 RMB/ton at the beginning of the month and 617.50 RMB/ton at the end of the month, an overall increase of 6.01%.
Analysis review
Entering January, due to the cold weather, the in natural gas consumption increased, which led to the cost of urea continue to rise, and the price of urea rose all the way. According to the monitoring of SunSirs, the price of urea in January rose from 1,833.33 RMB/ton at the beginning of the month to 2,033.33 RMB/ton at the end of the month, an overall increase of 10.91%. The surge in urea stimulated some downstream compound fertilizer companies to switch to purchasing ammonium chloride, which supported the demand for ammonium chloride.
The price of liquid ammonia rose in January, and the cost of ammonium chloride formed a slight support. According to the monitoring of SunSirs, the price of liquid ammonia in January rose from 3,290.00 RMB/ton at the beginning of the month to 3,383.33 RMB/ton at the end of the month, an overall increase of 2.84%.
In January, the operating rate of domestic Hou Soda enterprises remained at around 70%, and the supply was relatively tight throughout the month. In the downstream, although the operating rate of compound fertilizer was not high, as the Spring Festival is approaching, especially in the second half of January, the downstream stocking was tightened, and the procurement was relatively strong. The overall supply and demand also formed a certain degree of support for ammonium chloride.
Market outlook
The ammonium chloride analyst of SunSirs believes that on the one hand, as the Spring Festival is approaching, the stocking is nearing completion, on the other hand, there is no increase in expectations for the start of ammonium chloride in the later period, In addition, there is a high probability that the price of urea will continue to rise, and the ammonium chloride market will remain stable after a slight increase in the later period.
