Ammonium Sulfate Market Witnesses Slight Adjustment Amidst Flat Market Conditions (May 12-18, 2023)
Price Movement
The average factory price of ammonium sulfate in China experienced a minor decline, from 850 RMB/ton on May 12 to 843 RMB/ton on May 18, indicating a decrease of 0.78% during the week.
Analysis Overview
During this week, the ammonium sulfate market witnessed a slight price decline. The international market for ammonium sulfate remained stagnant and weak, while the domestic market displayed limited fluctuations. Downstream buyers made purchases based on immediate needs, predominantly opting for lower-priced options. Coking grade ammonium sulfate enterprises maintained a stable operating rate, with slight adjustments in bidding prices. However, CPL ammonium sulfate enterprises faced a decline in operating rate, resulting in a tight supply of goods. As of May 18th, the mainstream factory quotation for coking grade ammonium sulfate in Shandong ranged around 780-790 RMB/ton, whereas CPL ammonium sulfate was quoted at approximately 840-870 RMB/ton.
In the downstream composite fertilizer market, a weak consolidation was observed with minor market fluctuations. The trend for compound fertilizer raw materials was unfavourable, and weak cost support prevailed. Downstream restocking was driven by demand, particularly for corn fertilizer, which saw concentrated deliveries based on orders, while new orders were primarily negotiated.
Market Outlook
The domestic ammonium sulfate market recently experienced limited fluctuations and adjustments, reflecting weak demand both domestically and internationally. Downstream buyers continue to make purchases based on immediate requirements, leading to a reasonably acceptable market. It is anticipated that the ammonium sulfate market will remain relatively weak in the short term.
