The market of ammonium chloride continued to be weak in May. According to the commodity market analysis system of SunSirs, as of May 31, the market price of dry ammonium chloride for agricultural use in East China was 627 RMB/ton, down 27.46% from 865 RMB/ton at the beginning of the month.
The price of raw material liquid ammonia had significantly decreased, and the cost of ammonium chloride significantly decreased; The price of urea had decreased, weakening support for ammonium chloride in terms of substitutability; The start of ammonium chloride production was around 80%, and the pressure on the supply side was still present; The spring fertilizer peak season in the downstream had ended, and the supply and demand of ammonium chloride had weakened; The fundamentals of the industrial chain were weak, and the domestic ammonium chloride market had significantly declined. As of May 31st, the mainstream factory price of ammonium chloride for agricultural use in East China was between 600 to 650 RMB/ton.
Analysis review
In May, the liquid ammonia market fell significantly, and the cost of ammonium chloride decreased significantly. According to the Commodity Market Analysis System of SunSirs, as of the 31st, the price of liquid ammonia was 3,000 RMB/ton, a decrease of 7.22% from 3,233 RMB/ton at the beginning of the month.
In May, domestic urea prices fell, weakening support for ammonium chloride. According to the Commodity Market Analysis System of SunSirs, as of May 31, the domestic urea price was 2,402 RMB/ton, a decrease of 8.08% from 2,613 RMB/ton at the beginning of the month.
Supply and demand side: At the end of the month, some manufacturers in Jiangsu and other regions in China shut down for maintenance, and the start of the combined alkali plant decreased to around 80% compared to the previous period. However, the pressure on the ammonium chloride supply side was still high; Downstream compound fertilizer and extruded particle enterprises had a weak demand support for ammonium chloride during the off-season. The market situation was sorted to be weaker. In addition, the downward trend in urea prices also had a negative impact on ammonium chloride. Since May, the factory prices of ammonium chloride enterprises had gradually decreased.
Market outlook
According to ammonium chloride analysts from SunSirs, the weak situation of the ammonium chloride industry chain is difficult to improve in the short term, and it is expected that the ammonium chloride market will consolidate in a weak manner in the short term.
