Summary & Analysis of China Domestic Ammonium Sulfate Price in 2021
1. Price Trend Review
In 2021, ammonium sulfate fell by 214.29% overall throughout the year, with a maximum increase of 240.48% and a maximum decrease of 4.89% within the year.
On January 1, 2021, the average ex-factory price of domestic ammonium sulfate is 560 yuan/ton, and on December 31, it is 1760 yuan/ton. The highest price in the year is 1906 yuan/ton, and the lowest price is 560 yuan/ton.
2. Market Analysis
According to the monthly rise and fall chart in 2021, it can be seen that the price of domestic ammonium sulfate rose and fell throughout the whole year. In October, it rose more, with an increase of 62.96%. In August, it fell more, with a drop of 4.89%.
The first stage
From January to March 2021, the price of ammonium sulfate rose sharply, with an increase of 61.91%. At the beginning of this year, the chemical fertilizer market has been full of surprises, with nitrogen, phosphorus, potassium and compound fertilizers rising across the board. The export market is performing well, the overall inventory of enterprises is not high, the supply of ammonium sulfate in the market is tight, and enterprises have a strong intention to increase the selling price.
The second stage
From April to June 2021, the price of ammonium sulfate will rise by 13.36%. The price of compound fertilizer raw material urea rose, and the price of compound fertilizer increased accordingly. Due to the increase in cost, the pressure on compound fertilizer enterprises has increased. With the increase in fertilizer use, the market atmosphere has gradually improved, and the demand for ammonium sulfate has increased under the high-level operation of urea. Some enterprises and distributors use it instead of urea fertilizer.
The third stage
From July to September 2021, the price of ammonium sulfate will rise by 8.33%. Some caprolactam enterprises have undergone equipment maintenance, and the supply of caprolactam-grade ammonium sulfate has decreased, which has affected production. Under the influence of environmental protection and dual control, it is difficult to increase the supply. The price of downstream compound fertilizer raw materials is firm, and enterprises purchase on demand.
The fourth stage
In October 2021, the price of ammonium sulfate rose sharply, with a monthly increase of 62.96%. From the second half of October, the price began to rise sharply, ranging from 500-1000 yuan/ton. The domestic market conditions are good, and many companies raise prices. Foreign demand is relatively strong, and orders continue to increase. Due to good demand and tight supply, it keeps rising to the highest level of 1906 yuan/ton in the year.
The fifth stage
From October to December 2021, the price fell by 7.696%. Due to the decline in the price of compound fertilizer raw materials and insufficient cost support, the market has no clear guidance. The domestic market is running weak. Although the demand side is still there, downstream enterprises are resistant to high prices and have a wait-and-see attitude. Since December, the demand side continued to slump, and the price trend of ammonium sulfate fell to the end of the year.
3. Major events
Capacity and output increase a lot
China total production capacity of ammonium sulfate in 2021 will be 18.55 million tons, an increase of 16.3% to 2.6 million tons compared with last year. The total output in 2021 will be 13.73 million tons, a year-on-year increase of 3.4%.
Exports hit record highs
In 2021, the export volume from January to November will be 10.64 million tons, an increase of 2 million tons over last year, an increase of 22.9% year-on-year.
The sudden policy caused prices to skyrocket.
On October 15, 2021, the policy stipulates that the import and export of chemical fertilizers requires legal compulsory inspection, but ammonium sulfate is not included. Offical link
Several new caprolactam plants started production.
Shandong Hualu Hengsheng, Inner Mongolia Kingho Group and Lunan Chemical successfully put into production
Thank you for your reading. If you are interested more in China AmSul export price, you may read this article
