SunSirs: Ammonium Chloride Market Was Hard to Rise, There May Be Opportunities in the Later Stage (September 14-21)
http://www.chemnet.com Sep 22,2022
This week (9.14-9.21) the ammonium chloride market was in a low-level consolidation. According to the data monitoring of SunSirs, as of September 21, the price was 975 RMB/ton.
Since September, the rising prices of raw material liquid ammonia and nitrogen fertilizer urea h stimulated the willingness of ammonium chloride enterprises to support prices, and some enterprises tentatively raised the price of ammonium chloride by 20-30 RMB/ton; However, with the gradual resumption of production in the early maintenance enterprises, the supply of ammonium chloride was sufficient. The domestic joint alkali plant started at around 80%. In addition, the stock of ammonium chloride was too large, the supply side suppressed ammonium chloride to a certain extent. In addition, the demand side was still weak, and the support for ammonium chloride was limited. On the whole, the ammonium chloride market this week is in a state of wanting to rise and difficult to rise, and a low level of consolidation.
The pre-maintenance equipment gradually resumed production, and the domestic joint alkali equipment increased to around 80%.According to the monitoring of SunSirs, the 800,000-ton/year combined alkali plant of Bohua Yongli has been gradually restarted recently, and the 1.2 million tons/year combined alkali plant of Shilian has been restarted to normal operation recently. The downstream is currently in the off-season of agricultural fertilizers, and the downstream compound fertilizer starts around 30%; the demand for ammonium chloride in autumn fertilizer has basically ended, and the winter storage has not yet started, and the demand for ammonium chloride continues to be weak.
This week (9.14-9.21) the price of raw material liquid ammonia rose, and the cost side supported ammonium chloride. According to the monitoring of SunSirs, as of September 21, the domestic liquid ammonia price was 4,373 RMB/ton, an increase of 4.38% from last Wednesday's 4,190 RMB/ton; compared with 3,866 RMB/ton at the beginning of the month, an increase of 13.10%.The sharp rise in the market is mainly related to the supply-demand tension and the cost-benefit impact of higher upstream coal and natural gas prices.
This week (9.14-9.21) domestic urea prices fell slightly, weakening the support for ammonium chloride. According to the monitoring of SunSirs, as of September 21, the domestic price of urea was 2,541 RMB/ton, down 1.13% from last Wednesday's 2,570 RMB/ton; compared with 2,400 RMB/ton at the beginning of the month, up 5.88%.
The ammonium chloride analyst of SunSirs believes that the current supply of ammonium chloride is still loose and the demand support is weak, but the price of raw materials is rising. If the cost side continues to rise, the ammonium chloride market may rise in the later period.