Market Softens, Ammonium Sulphate Prices Decline (2023 May 8th-12th)
I. Price Trends
The average ex-factory price of ammonium sulphate in the domestic market was 880 RMB/ton on May 8th, and it dropped to 850 RMB/ton on May 12th. The price of ammonium sulphate decreased by 3.41% this week.
II. Market Analysis
The price of ammonium sulphate in the domestic market declined this week. The international market for ammonium sulphate remains weak with no significant improvement. The domestic market trend is unfavorable, leading downstream buyers to make on-demand purchases and seek lower-priced options. This week, the operating rate of ammonium sulphate producers in the coking industry remained stable, but the market conditions were poor, resulting in a decline in bid prices. The operating rate of ammonium sulphate producers in the caprolactam industry decreased, leading to tight market supply and firm prices. As of May 12th, the mainstream ex-factory prices for coking-grade ammonium sulphate in Shandong region were around 800 RMB/ton, while for caprolactam-grade ammonium sulphate, the mainstream ex-factory prices in Shandong region ranged from 850 to 890 RMB/ton.
The downstream compound fertilizer market operated steadily this week with minimal fluctuations. Currently, terminal demand is gradually picking up, and shipments of corn fertilizers are concentrated. However, the raw material market for compound fertilizers weakened, lacking sufficient cost support and resulting in an unstable market sentiment.
III. Future Forecast
We believes that the domestic market for ammonium sulphate has recently shown weak and volatile conditions, with foreign demand remaining weak as well. Downstream buyers continue to exert downward pressure on prices, resulting in sluggish market transactions. It is expected that the ammonium sulphate market will remain weak and undergo consolidation in the short term.
