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SunSirs: The market of Ammonium Chloride Rose Slightly in January

February 04 2020 10:08:08     SunSirs (John)

Price trend

According to the data of SunSirs, the market price of ammonium chloride rose slightly in January. The price at the beginning of the month was 507 RMB/ton, and the price at the end of the month was 512 RMB/ton, with an overall slight increase of 0.99%.

 

Analysis review   

Ammonium chloride has a small amount of support from pre-festival stocks

Before the Spring Festival, the stock market started a little, and the downstream compound fertilizer enterprises started nearly 50%, the demand for ammonium chloride still has some support.

Suspension and maintenance of some joint-alkali enterprises

At the beginning of January, the overall industrial operation rate of the combined alkali enterprises was around 80%, and the supply pressure of ammonium chloride was high. But with the Spring Festival approaching, some enterprises shut down for maintenance. According to SunSirs, the operating rate of the combined alkali unit in North and Northeast China before the festival was relatively low between 40-60%. In addition, after the festival, Yunnan, Jiangsu and other local soda enterprises have parking plans, forming a certain support for ammonium chloride as a whole.

Lower urea price has certain negative effect on ammonium chloride

On the one hand, the supply of urea is obviously surplus. In addition, some leading urea enterprises have plans to resume production in January, and the demand will not increase significantly before and after the Spring Festival, resulting in the gradual fall of urea price and a certain negative effect on ammonium chloride.

 

Market outlook

According to the analyst of ammonium chloride of SunSirs, although some associated alkali enterprises have parking plans, the market demand for ammonium chloride is weak at present, and the downstream operating rate is still not optimistic. It is expected that the price of ammonium chloride will be weak in the later stage. 

 

If you have any questions, please feel free to contact SunSirs with marketing@sunsirs.com.

 

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