Price trend
According to the data monitoring of SunSirs, the ammonium chloride market has risen sharply since the beginning of the year. The price of ammonium chloride was around 582.50 RMB/ton at the beginning of the year. As of February 28, the price of ammonium chloride was 652.50 RMB/ton, an overall increase of 12.02%.
Analysis review
The prices of raw liquid ammonia and urea are strong at a high level, which provides certain support for ammonium chloride. In terms of cost, the price of liquid ammonia has been rising since mid-November last year, with an increase of 14.08%. Since the beginning of the year, the price has also remained strong, and the cost has support for ammonium chloride; Urea prices have also risen by nearly 30% since October last year. The high price of urea has caused some downstream manufacturers to consider turning to ammonium chloride, which supports the rise of ammonium chloride prices.
The price of soda ash has risen, and the operating rate of Hou's enterprises has remained above 70%. Although the supply of ammonium chloride has remained loose, the enterprises have more orders in the early stage and the inventory pressure of enterprises is not great. According to SunSirs, as of February 28, 2021, the Henan Jinshan Hou Soda plant operated normally. The current ex-factory price of dry ammonium is 620 RMB/ton, and the company is temporarily not accepting orders; The 600,000 tons/year ammonium chloride plant of China National Salt Kunshan is operating normally, and the company will not accept orders for the time being. The price of high-quality ammonium chloride for agricultural use in Huai'an Bolian Trading is stable, and the current price of dry ammonium is 700 RMB/ton; Bang Chemical's ammonium chloride plant with an annual output of 900,000 tons is operating normally, the inventory is low, and the ex-factory price of dry ammonium is 750 RMB/ton, and the daily output is about 3,500 tons.
Market outlook
The ammonium chloride analyst of SunSirs believes that the current ammonium chloride inventory pressure is not great, and the prices of liquid ammonia and urea are high. It is expected that the price of ammonium chloride will remain high and firm in the near future.
