Three good factors help increase the price of ammonium sulfate

Three good factors help increase the price of ammonium sulfate

Since the middle and late December of last year, the price of ammonium sulfate has been rising steadily. After the New Year's Day this year, the scope of the increase further expanded. Many manufacturers in Hebei, Shanxi, Anhui, Jiangsu, Hunan, Henan, Jilin and other places have seen price increases of around RMB 30/t, up from RMB 60/t. At present, the market atmosphere is relatively good, and the price of ammonium sulfate in the future market may further increase, but the upside will not be much.

There are three main reasons for the rise in the price of ammonium sulfate:
One is the increase in demand for compound fertilizers. Ammonium sulfate is one of the raw materials for the production of compound fertilizers. With the gradual opening of spare fertilizers for spring plowing, the operating rate of compound fertilizer enterprises has increased and the demand for ammonium sulfate has increased.
The second is good export. In recent years, China's ammonium sulfate exports have shown a good trend, and the export volume has continuously hit a record high. According to the statistics of the country's customs, from January to November 2014, the total amount of ammonium sulphate exported was 3,516,800 tons, an increase of 34.39% year-on-year. It is expected that the annual export volume will reach 3.9 million tons. A large number of ammonium sulfate exports have eased the contradiction between supply and demand in the domestic market and also formed support for ammonium sulfate prices.
The third is the elimination of quotas for rare earths to boost market confidence. Since 2015, China's implementation of 16 years of rare earth quota officially canceled, you can only use the export contract to apply for exports, without the need for approval. This news is a big positive for the rare earth market, and it also makes the ammonium sulfate market as a raw material for rare earth materials gain confidence and raise prices.
At present, the confidence of the ammonium sulfate market has been restored to some extent, and dealers' enthusiasm for entering the market has increased. However, overall, the room for growth in the ammonium sulfate market may be limited. The main reason is that rare-earth ammonium sulfate accounted for a small proportion of total ammonium sulfate demand in China, only about 10%; and the overall turnover of the chemical fertilizer market did not change significantly, the leading species of urea prices have been lowered after New Year's Day, which will Restricted the trend of the ammonium sulfate market; In addition, the current international ammonium sulfate prices are only steady and small rise, and there is no big rally, it is difficult to form a big pull on domestic ammonium sulfate prices.

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