Analysis: This week (9.8-12), the liquid ammonia market in Shandong region was weak, with prices continuing to decline and the decline slowing down compared to last week. According to the Commodity Market Analysis System of Shengyi Society, the main production area of Shandong experienced a weekly decline of 1.02%. Due to prominent supply pressure, market inventory remains at a high level. The maintenance equipment is partially in operation, and the overall supply performance is loose. In addition, some ammonia plants have increased their ammonia conversion capacity, and the accumulation of liquid ammonia continues to put pressure on the manufacturers. Manufacturers’ prices have gradually loosened during the week, and as the weekend approaches, the overall decline in prices for major factories in Shandong is around 100 yuan. Distributors mainly underreport shipments. And downstream procurement enthusiasm is not high, agricultural demand is still in the off-season, industrial demand remains rigid, and the overall demand side is bearish. At present, the mainstream quotation in Shandong region is between 2200-2350 yuan/ton.

Prediction: It is difficult to alleviate the supply pressure in the near future, coupled with the low operating rate of compound fertilizers downstream of liquid ammonia and limited recovery of phosphorus fertilizer production, which further limits the demand for liquid ammonia. Mainly follow up on agricultural and industrial demand. It is expected that liquid ammonia will continue to maintain a weak and volatile market.