Ammonia Prices Saw a Slight Uptick in the Asian Chemical Market in Q4 2023

The prices for ammonia have exhibited vacillating trends, ending with a slight uptick in the Asian chemical market during the final months of Q4 2023. The weak supply, amid the rise in the demand for ammonia in the Asian market, contributed to the increasing prices during the final months of 2023. Analysis conducted at the Procurement Resource concludes an overall m-o-m rise of 0.77% in December for Ammonia.

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The strict measures taken for environmental protection in Shandong led to strong speculation in the chemical market, with an anticipation of a hike in the costs of ammonia. The regulations called for a decline in production, resulting in supply tightening. The situation of low supply and high demand built a fair ground for an uptrend in the costs of ammonia in the Asian Market.

Hike in Ammonia Prices in China Amid Rising Demand from Downstream Industries During November

Prices of liquid ammonia went up in Shandong, China during the month of November 2023. The chemical market was impacted greatly facing the situation of device failures, which reduced production during the period. The declining supply prompted a price hike proposed by the major manufacturers and dealers in the Chinese market. The prices were strengthened with the increasing demands witnessed from the downstream industries that are involved in fertilizer production, as well.

The Spot Prices Remained Stable, Ending with an Increase in the Asian Market Throughout December 2023:

The reduction in production activity remained constant throughout the month of December 2023. The strict environmental protection measures taken in the Chinese provinces, especially Shandong, coupled with the situation of temporary device failure in certain production units at Shanxi altogether, resulted in a decrease in the amount of production during the period. Moreover, the declining supply impacted the production activities in the downstream industries, as well. The weak production resulted in a tightening of supply and increased the costs of ammonia amid a rise in demand throughout December.

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Initiatives taken by Japan’s JERA On Using Ammonia Amid Rising Demands:

Japan’s power producer JERA has come up with proposing different ways to utilize ammonia other than power generation. The company is willing to study to incorporate ammonia as a fuel to ship, promoting decarbonization while including eco-friendly methods.

According to Procurement Resource, prices of ammonia in the Asian chemical market have experienced a slight m-o-m hike, measuring approximately 0.77% during December 2023. The increase in the costs was strengthened with a decline in the supply rate amid strict environmental protection measures taken in the Chinese provinces, which ultimately impacted the supply in the Asian market. However, the market maintained an uptick with the rise in demand throughout the final months of Q4 2023.