Sulfate Ammonium Market Continues to Rise (10.9-10.16)

October 16, news

According to the commodity market analysis system, on October 16, the average market price of ammonium sulfate in China was 1063 CNY/ton, compared to the average market price of 960 CNY/ton on October 9, indicating that the price of ammonium sulfate in China increased by 10.76%.

II. Market Analysis

Supply and Demand Situation

This week, the price of ammonium sulfate in China continued to rise. The operating rate of caprolactam grade decreased, leading to a reduction in market supply, while the operating rate of coke-grade remained stable. After the holiday, the demand for replenishment from downstream increased, and the market transaction atmosphere was good. This week, the market supply has been reduced, and manufacturers mainly maintained their prices. Currently, the market for ammonium sulfate remains optimistic, with the enthusiasm for replenishment from downstream not diminished, and the price of ammonium sulfate continues to be pushed up.

Market Situation

In the second quarter of 2025, China's retail gold investment and consumer demand reached 245 tons, a 10% decrease from the previous quarter, but a 28% increase compared to the same period last year, setting a new high for the second quarter since 2013. The total demand in the first half of the year was 518 tons, a 5% increase year-on-year. In terms of value, the retail gold investment and consumer demand in the second quarter and the first half of 2025 both set historical records, reaching 189 billion yuan and 372 billion yuan, respectively.

Jewelry consumption further weakened to 69 tons in the second quarter, a 20% decline from the previous year, and a significant 45% drop from the previous quarter. This led to a total demand of 194 tons in the first half of the year, a 28% decrease year-on-year. However, the total expenditure on jewelry by consumers remained at a high level during the same period.

The sales of gold bars and coins achieved the strongest performance for the second quarter since 2013, surging 44% to 115 tons, driving the retail investment demand in the first half of the year to 239 tons, a 26% increase year-on-year, also setting a new high for the first half of the year in the past 12 years.

China's gold ETFs saw their strongest quarterly performance on record, with inflows of 46.4 billion yuan (approximately 6.5 billion US dollars) in the second quarter, adding 61 tons to the holdings. In the first half of the year, the total assets under management (AUM) soared 116% to 152.5 billion yuan (approximately 21.3 billion US dollars), with the total holdings jumping 74% to 200 tons.

The People's Bank of China continued to purchase gold in the first half of the year, accumulating an additional 19 tons, including 6 tons purchased in the second quarter. Currently, China's official gold reserves stand at 2,299 tons, accounting for 6.7% of the total foreign exchange reserves.

As of October 16, the main ex-factory quotation for coke-grade ammonium sulfate in Shandong region is around 1,000 CNY per ton. For caprolactam-grade ammonium sulfate, the main ex-factory quotation in Shandong region is around 1,020-1,080 CNY per ton.

Future Market Prediction

Ammonium sulfate analysts note that the market for ammonium sulfate has recently been trending stronger. Currently, demand in the ammonium sulfate market is picking up, though cautious sentiment has grown following consecutive price increases. As a result, Chinese ammonium sulfate prices are expected to stabilize at higher levels in the near term.