Summary & Analysis of China Domestic Ammonium Sulfate Price in 2022
1. Price Trend Review
In 2022, ammonium sulfate fell by 19.71% overall throughout the year, with a maximum increase of 61.23% and a maximum decrease of 41.70% within the year.
On January 1, 2022, the average ex-factory price of domestic ammonium sulfate is 1590 yuan/ton, and on December 27, it is 1276 yuan/ton. The highest price in the year is 1926 yuan/ton, and the lowest price is 1123 yuan/ton.
2. Market Analysis
According to the monthly rise and fall chart in 2022, it can be seen that the price of domestic ammonium sulfate rose and fell throughout the whole year. In March, it rose more, with an increase of 57.6%. In February, it fell more, with a drop of 19.80%.
The first stage
From January to March 2022, the prices rose sharply after fluctuating and falling. In February, the atmosphere of the market was light, the trend of ammonium sulfate was weak, and the demand at home and abroad weakened. Due to the sluggish trading, manufacturers lowered prices one after another to clear inventory for shipment. In March, the price continued to rise, with an increase of 600-800 yuan/ton. The price of urea has continued to rise due to the war between Russia and Ukraine, which is good for the domestic ammonium sulfate market. Downstream enterprises concentrated their purchases, and the atmosphere in the venue heated up rapidly. On March 23, it rose to the highest value of 1926 yuan/ton in the year.
The second stage
From April to August 2022, the price of ammonium sulfate seesawed to drop by 34.96%. Downstream has resistance to high prices, domestic demand has weakened, and prices have fallen from high levels. Trade volume was subdued and weak. The price of urea continued to fall, and the domestic ammonium sulfate was negative on the side. In order to ensure smooth shipments by manufacturers and distributors, the transaction price continued to decline.
The third stage
From September to December 2022, the price of ammonium sulfate rebounded and then seesawed fell back. September-October began to rise continuously. The downstream operating rate has increased, so the demand has increased. There are many export inquiries, and the market is running well. Due to the COVID-19 pandemic situation and environmental protection restricting production, the operating rate of coke plants has decreased, and the supply of ammonium sulfate has decreased. From November to the end of the year, the price seesawed fell. Transactions were relatively low, domestic and foreign demand were both weak, and the overall performance was poor.
3. Major events
Exporting performance is outstanding and hits a new high
In 2022, the output of ammonium sulfate will be 17.1236 million tons, a year-on-year increase of 30.4%. The export quantity was 12.44 million tons, a year-on-year increase of 17.1%. In terms of export value, it was US$3,256,922,000, a year-on-year increase of 53.2%.
The market size continues to expand
In recent years, with the gradual acceleration of the replacement process of ammonium sulfate to urea, it has shown a relatively rapid increase in volume, and the market capacity of the industry has expanded significantly. The market size has risen from 689 million yuan in 2015 to 3.878 billion yuan in 2022.
Iron phosphate brings a lot of domestic ammonium sulfate as by-product
For every ton of battery-grade iron phosphate produced, bring about 1.3 tons of ammonium sulfate. At present, as the demand for iron phosphate in the new energy market gradually increases, the output of by-product ammonium sulfate also increases accordingly.
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