Late August so far urea prices a little stable after the full downward, the transaction situation is a little weak, the price pressure is obvious, urea supply and demand changes, in recent years, the new production capacity to put in focus, coupled with the previous maintenance of the urea enterprises have resumed production, the urea supply on the market has increased significantly, and at present the domestic daily output of urea has been raised to 182,000 tons or so, the start-up rate is at a relatively high level, but the demand of the downstream market for urea However, the demand for urea in the downstream market failed to increase effectively, and the expected fall peak season failed to arrive, with relatively low demand.
Urea companies are slow to follow up new orders, inventory pressure increased, compound fertilizer companies and other industrial demand failed to improve as expected, these customers only on-demand purchases, urea prices continue to be under pressure, downstream dealers, such as the urea wait-and-see attitude, not eager to take stock, only a few dealers will be a small amount of low purchase, the market pessimism does not diminish, urea can be described as a downhill to see the bottom.
Ammonium sulfate market has been slightly stagnant recently, mainly due to the domestic agricultural performance in general, the demand for ammonium sulfate reduced, compound fertilizer and corn deep processing and other industrial demand is relatively stable, failed to drive the market price, coupled with the domestic price of urea after a significant downward trend, the downstream customers to replace the ammonium sulfate with urea will be more and more, the current Linyi urea takeover price of about 1,900 yuan / ton, Linyi, Linyi, ammonium sulfate manufacturers 910 yuan / ton, ammonium sulfate prices are under pressure, exports are relatively good, but the recent fluctuations in the exchange rate is slightly unfavorable to the negotiation of export orders.
In the short term, the supply and demand imbalance of urea is difficult to change, in order to protect the domestic supply of urea, exports have been reduced, resulting in an increase in domestic supply, the downstream willingness to take orders for urea is not strong, agricultural demand is still low, industrial demand has not been a significant increase in the price of significant pressure, there should be a certain amount of space to fall, but also on the price of ammonium sulphate to cause a certain amount of suppression.
Although the recent coking enterprises production restrictions led to a reduction in the supply of coking by-product of ammonium sulfate, compared with previous years, the overall supply of ammonium sulfate is still sufficient, mainly due to the expansion of caprolactam grade ammonium sulfate in Shandong, Hubei and other places, the supply is still at a high level, and it is difficult for the domestic market to digest the surplus of ammonium sulfate, mainly by the export of ammonium sulfate to alleviate the export volume of ammonium sulfate has continued to increase in recent years, because our country's urea has not been exported, and international demand for ammonium sulfate is still low, and there should be some room for decline. The demand for ammonium sulfate is still large, and Brazil and other countries mainly rely on our ammonium sulfate, but at present because of changes in the exchange rate, a number of countries in Southeast Asia to China's high-priced ammonium sulfate acceptance of the weakening of the ability to export transactions are relatively decentralized.
In summary, the price of urea and ammonium sulfate there are different degrees of pressure, when the autumn preparation for fertilizer concentrated and winter storage is opened, will form a certain price support for urea, the price is still hopeful of a rebound, but for the time being, the probability that the price of urea is to continue to run on the weak side, behind the need to pay close attention to compound fertilizer enterprises on the progress of the purchase of raw materials such as urea and the time of the light storage of the pickup; the domestic coking-grade supply of ammonium sulfate enterprises It is possible to continue to reduce the impact on prices should not be large, exports are still very key, the back need to pay close attention to the international market price trend of urea and ammonium sulfate and Brazil and other international customers' demand.
