Price trend

On November 6th, at the beginning of the week, liquid ammonia in Shandong continued its upward trend last Friday. According to the Commodity Market Analysis System of SunSirs, the daily increase in the main production area of Shandong was 1.69%.

Analysis review

The main reason was the continuation of tight supply. Mainly due to short-term malfunctions in the manufacturer's equipment, partial shutdowns, and delayed supply. On Monday, large factories in Shandong and surrounding Hebei generally raised prices by 100 RMB/ton. The dealer's offer kept up. In addition, downstream urea spot prices were strongly affected by futures, resulting in strong performance, coupled with tight supply, and production restrictions in the Shanxi region. From a terminal perspective, agricultural demand followed up in a timely manner, while industrial demand was mainly supported by demand. However, there were not many new export orders, which may become a limiting factor for the rise of liquid ammonia in the later stage. As of November 6, the mainstream quotation in Shandong region was between 3,900-4,000 RMB/ton.

Market outlook

It is expected that in the near future, there will be a recovery in the equipment of northern liquid ammonia enterprises, and the downstream industrial demand is average. In the short term, liquid ammonia may not be able to push up effectively, so it is not ruled out that the price may fall back from a high point.

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