China Ammonium Sulfate Market Experienced Fluctuations and Decline in June (June 1-27, 2023)
Source: SunSirs
Price Trend:
According to SunSirs’ Commodity Market Analysis System, the average factory price of ammonium sulfate in China was 753 RMB/ton on June 1st and decreased to 663 RMB/ton on June 27th. The price of ammonium sulfate has fallen by 11.95% this month.
Analysis Review:
The ammonium sulfate market witnessed a continued weakening trend in June, characterized by fluctuating and declining prices. Coking grade ammonium sulfate experienced low levels of sorting with narrow price adjustments. Domestic ammonium sulfate prices were reduced, while the international market for ammonium sulfate remained weak with fewer orders. The overall demand for composite fertilizers downstream was weak, focusing mainly on on-demand procurement. Additionally, the weakening of urea prices this month had a negative impact on the ammonium sulfate market. As of June 27th, the mainstream factory quotation for coking grade ammonium sulfate in the Henan region was around 670 RMB/ton, while the mainstream factory quotation for CPL grade ammonium sulfate in Shandong was around 700 RMB/ton.
By analyzing the weekly fluctuations from March 27th, 2023 to June 19th, 2023, it can be observed that domestic ammonium sulfate prices were mixed within the cycle, but experienced a significant decline in June, with the largest drop of 4.47% occurring in the week of June 5th.
This month, the market trend for downstream compound fertilizers was weaker, resulting in lower prices. The raw material market for composite fertilizers faced unfavorable conditions with weak cost support. Sluggish downstream demand and difficult shipment conditions indicate that short-term market conditions are unlikely to improve.
Market Outlook:
SunSirs analysts believe that the recent demand for ammonium sulfate in both domestic and foreign markets has been poor, creating a strong wait-and-see atmosphere in the market. Downstream markets are experiencing sluggish conditions, with minimal purchases of raw materials and cautious operations from dealers. The price of ammonium sulfate is expected to continue to decline in the short term.
