Liquid ammonia prices in China have been declining recently majorly ascribed to the resumption of operation across various facilities, contributing to a looser supply side. Moreover, manufacturers increased their urea to ammonia conversion rates, which has significantly boosted ammonia production. As a result, the market prices for Ammonia were pushed down.
Distribution channels are reacting by quoting lower prices for shipments in response to the increased supply. On the demand side, enthusiasm remains subdued with agricultural demand entering its off-season and industrial demand staying rigid. Overall, the market sentiment is bearish, reflecting both a surplus in supply and tepid demand.
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Recently, the procurement from agricultural sectors has slowed, and industrial demand has merely kept pace with necessary supply levels. However, there might be some sigh of relief for the liquid ammonia prices. While agricultural procurement has been slow, there may be potential for increased orders as inventories are consumed. Industrial demand continues to follow its basic needs. Taking all these factors into account, the downward trend in liquid ammonia prices might halt, with a possible price rebound on the horizon next week.
Senior Lead Analyst
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