Ammonium Sulfate Market Prices Decline in May (5.1-5.29)
- Price Trend
The average ex-factory price of ammonium sulfate in China was 880 RMB/ton on May 1st, and it decreased to 786 RMB/ton on May 29th. The price of ammonium sulfate this month has declined by 10.61%.
- Market Analysis
Based on the weekly fluctuations from March 6, 2023, to May 22, 2023, it can be observed that the domestic ammonium sulfate market has experienced alternating increases and decreases. The largest decline in May occurred during the week of May 22nd, reaching -5.14%.
The market conditions for ammonium sulfate weakened this month, and prices continued to decline. In the first half of May, the international market for ammonium sulfate remained weak with no significant improvement. The domestic market showed unfavorable trends, leading downstream buyers to purchase according to demand and seek lower prices. The operating rates of coking-grade ammonium sulfate producers remained stable, but the market conditions were unfavorable, resulting in a decrease in bid prices. However, for industrial-grade ammonium sulfate, the operating rates declined, causing a tight supply in the market and maintaining stable prices. In the second half of May, the operating rates of industrial-grade ammonium sulfate producers slightly increased, indicating a weakening market. Due to a significant drop in urea prices, which negatively impacted the ammonium sulfate market, prices continued to decline, and the market sentiment turned bearish. As of May 29th, the mainstream ex-factory prices for coking-grade ammonium sulfate in Shandong province were around 720-760 RMB/ton, while for industrial-grade ammonium sulfate, they were around 780-830 RMB/ton.
In the downstream compound fertilizer market, there was a weak consolidation with a downward shift in trading activity. The trend of raw materials for compound fertilizers was unfavorable, with weak cost support. Downstream buyers made purchases based on demand and were cautious about stocking up. Orders for corn fertilizer deliveries were the main focus, with new orders being more cautious and subject to negotiation.
- Future Predictions
The domestic market conditions for ammonium sulfate have been sluggish recently, and prices continue to weaken. The continuous decline in urea prices has negatively affected the nitrogen fertilizer market, leading to downward pressure on prices from downstream buyers. It is expected that the price of ammonium sulfate will continue to decline in the short term.
