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According to the Business Community, liquid ammonia has continued to rise after a brief adjustment last week. As of the 24th, the mainstream price of liquid ammonia in Shandong was 4400-4550 yuan/ton, with a significantly weekly increase of 4.66%. The price in Shandong, Hebei, Jiangsu, Anhui and other major production areas rose as well, mainly due to the tight supply and the moderate growth of demand.

From the perspective of the supply, many units had plans to resume to work last week. Under the expected increase in supply, the price of ammonia market was suppressed. This week, the news changed, and the recovery time of the device for early maintenance was delayed. In addition, some devices failed and shut down this week, such as the temporary inspection of devices in Xinghua and Huangling in the northwest, thus the tight supply drove the manufacturers to continue to push up prices. In Shandong Province, large manufacturers have adjusted prices three times in a week, with a cumulative increase of nearly 300 yuan/ton.

From the perspective of the liquid ammonia industry chain of the Business Community, the market situation of the upstream and downstream of liquid ammonia market improved significantly this week, with more rising and less falling. The coal market shocked in the upstream, natural gas prices continued to rise last week, but the cost side still had supporting capability in some degreed.

The downstream area of liquid ammonia has improved slightly, and the main downstream product urea has been stronger, with urea rising 1.27% in the week, and the market is tentatively warming up. After a long winter of sluggish demand, the agricultural demand slowly climbed. Before that, the rejuvenation of fertilizer in central China ended, but agricultural fertilizer preparation in North China and Southwest China started. The industrial demand remained stable, and deliveries of urea factories only increased. It is expected that the market will still be in a heating period from the end of the month to the beginning of the next month.

The Business Community believes that there may be some changes in the supply side in the near future. Many units in Hebei, Anhui, Hubei and other places are facing the resumption of production, and the output is expected to increase. The supply side may be under pressure. The demand side is relatively stable, and the increase of downstream orders will support the strong ammonia market. In comprehensive consideration, it is likely that liquid ammonia will maintain a high level of consolidation next week, and there is little probability that the short-term price will significantly loosen.