Raw materials boost, demand increases, monoammonium prices rise

Monoammonium has recently increased rapidly. So far, the high-end acceptance price of 55% powdered monoammonium in Hubei has risen to 1880-1900 yuan (ton price, the same below), and the acceptance price of 1830 yuan for small factories has also been suspended. , Remember that before the price increase in the previous period, the actual acceptance of 55% powdered ammonium in Hubei was 1780-1830 yuan; after the price of Sichuan Dachang increased by 50 yuan last week, it rose again by 50 yuan this week, and the current 55% powdered ammonium ex-factory price is 1900 yuan. Recently, sales in Yunnan have also been satisfactory. Some small factories actually sent out 55% powdered ammonium at RMB 1,300 to 1,650 yuan in the early stage. This week it is reported that it has risen to RMB 1,700.

It can be seen from the above that the price of 55% powdered ammonium has increased by 50-100 yuan, and the actual transaction has increased by 50-70 yuan. So why does this happen?

Raw materials boost. The price of raw phosphate rock has not changed much in the long-term, but it will enter the limited mining period in winter. The quotation will increase slightly, ranging from 10 to 30 yuan, although the downstream acceptance is not high. For example, the actual increase in Henan phosphate rock is only 0 temporarily. -5 yuan, but it accounts for a relatively large proportion of the cost of monoammonium, and the impact is relatively high. The price of sulfur continued to rise after the holiday. In previous years, the price of sulfur increased before and after the phosphate compound fertilizer meeting. The price of Puguang Sulfur in Wanzhou Port and Dazhou Plants rose to 780 yuan and 750 yuan, respectively. The price of granular sulfur at the Yangtze River port also rose to 755 yuan. There is also a certain boost to the cost of monoammonium.

Demand afterburner. Although some large compound fertilizer plants have replenished their inventory before the National Day, there is not much demand for replenishment after the holiday, but the phosphate and compound fertilizer meeting has been postponed and the price of nitrogen and potassium raw materials has continued to rise, and small and medium fertilizer companies in various regions have gradually joined the procurement of raw materials. Although the quantity of each order is not large, the market sentiment is good. In addition, most monoammonium companies have no inventory pressure, and compound fertilizer companies are more proactive in purchasing. They believe that the trend of monoammonium price increases will continue for a period of time, and the operation is relatively safe. Procurement is appropriate, but the monoammonium spot on the market is tight and there are fewer opportunities to get the spot.

Supply is tight. From late September to the end of the month, some large compound fertilizer plants have begun to purchase monoammonium, which is a raw material for winter, and replenish their warehouses. They believe that the price of monoammonium was relatively low at that time and the operation should be safer. In addition, the purchase demand of several large factories in the northeast has made monoammonium. Enterprises have entered the winter raw material production stage early, and the enterprises that originally planned to be overhauled in October have also temporarily postponed the overhaul period. Several large factories in Hubei are waiting to send more orders and begin to control orders. After the National Day holiday, with the postponement of the phosphate and compound fertilizer meeting, many small and medium-sized compound fertilizer companies began to purchase raw materials, resulting in a gradual increase in pending orders for monoammonium companies. Some large monoammonium plants suspended quotations and received orders, and they were able to receive orders. There are fewer enterprises, and many main suppliers are ready to go.

In summary, the favorable factors of monoammonium dominate. In the short term, the quotations are still on the rise, and it is expected that actual transactions are expected to continue to rise slightly.