International Liquid Ammonia Market Continues To Decline

- May 22, 2019-

In recent years, the domestic liquid ammonia price is supported by the price of raw coal and natural gas, and the environmental protection and production capacity. The mainstream of the domestic market is mostly adjusted at a high level, and the overall profit is still considerable. However, the foreign market may not be entirely. From the 19 years, until May, nearly half a year, the international external disk price has been developing steadily.

In January, competitive suppliers in Trinidad and the Middle East had good stock levels and sufficient stock availability. After a period of serious losses, the ammonia market was suspended, most of the prices remained unchanged, and partial declines were adjusted.

In February, the pessimism east of Suez is putting more pressure on prices in the Middle East and East Asia, and prices continue to fall, while spot demand is still at such a low level.

In March, the ammonia market was stable, but there were still some weaknesses in some areas, which made the market trend divergent. The lack of tonnage supplied by Algeria is prompting buyers to switch to well-stocked Caribbean producers to meet demand in March. Tampa's contract settlement price in March fell by $10/ton, causing China's spot demand to attract lower cfr prices and lighter buying.

In April, prices in some regions continued to decline. Despite some activities in northwestern Europe and East Asia, global demand remained generally weak. Demand from the west of Suez is still sluggish, and the price of Yuzhny is further under pressure.

In May, competition between producers and other supply regions has become more intense as new spot activity has caused prices to continue to fall. For those who need to buy ammonia in May and June, although spot prices in some regions are getting closer to production costs, prices are falling and some sales resistance is beginning to show. The weakest areas remain in the United States and Trinidad, where the main source of seasonal demand in the Western market is drying up, and the focus of the rest of the second quarter will shift to demand in the East.