Ammonium Sulfate Tends to Stabilize After Continuing Its Decline (June 1–June 5)

June 5th, News

I. Price Trends

According to the commodity market analysis system, on June 5th, the average market price of caprolactam-grade ammonium sulfate in China was 1503 CNY/ton, compared to the average market price of 1583 CNY/ton on June 1st. The market price of caprolactam-grade ammonium sulfate in China fell by 5.05%.

II. Market Analysis

Supply and Demand Situation

This week, the Chinese ammonium sulfate market continued to show a weak trend with a general decline. At the beginning of the week, the price of ammonium sulfate fell and then stabilized. This week, the international urea market weakened, which negatively affected the ammonium sulfate market. The facility utilization rate for caprolactam grade decreased this week, leading to a reduction in market supply. Currently, the demand for ammonium sulfate is weakening, with limited terminal demand and poor export conditions. Due to the previous continuous rise in prices, downstream buyers have become more cautious in their purchasing.

Market Conditions

As of June 5, for coking-grade ammonium sulfate, the mainstream ex-factory price in Shandong region of China is around 1,040 CNY per ton. For caprolactam-grade ammonium sulfate, the mainstream ex-factory price in Shandong region of China is around 1,430-1,510 CNY per ton.

III. Future Market Forecast

Ammonium sulfate analysts believe that the recent market trend for ammonium sulfate in China has been mainly downward. With reduced market transactions and negative impacts from international urea, ammonium sulfate is currently in a state of high-level correction. It is expected that the short-term ammonium sulfate market in China will mainly show a weak and volatile trend.