A number of enterprise equipment shutdown, ammonium nitrate supply and demand tension to a substantial increase in price

The business community monitoring data show that as of March 17th the average price of 2190 yuan / tons of ammonium nitrate, than at the beginning of the month rose 6.83% in January has risen 17.02%. The highest price of some manufacturers is 2500 yuan per ton under the influence of supply and marketing.

Affected by the safety problems during the period of tighter environmental protection and NPC and CPPCC, Shandong Luguang chemical, Anhui Huaihua, Henan Shanxi, Sichuan Jinxiang, ammonium nitrate plant shutdown, the start time of uncertainty. The industry believes that the impact of parking, market supply and marketing tension, local ammonium nitrate manufacturers are optimistic, the volume of goods is tight. After the end of the two sessions, the main demand for the downstream demand plant is expected to be restored to a large area. The supply of ammonium nitrate will further tighten. On the other hand, the cost of raw materials will go up and support the price. It is expected that the short term supply and demand contradiction is difficult to ease, and the price of the later market continues to rise.

Listed companies:

Xinghua shares (002109): the largest ammonium nitrate production enterprise inChina, with a capacity of 800 thousand tons of ammonium nitrate.

Taihua shares (600281): with chemical raw materials and products upstream and downstream integrated industry advantages, ammonium nitrate production capacity of 400 thousand tons / year.

Cangzhou Dahua (600230): the company in the production and sale of chemical fertilizers and other chemical products industry (natural gas as the main costs accounted for more than 70%), the company has from the Kellogg Inc and the Holland Sitemikabang company imported 300 thousand tons of synthetic ammonia and 480 thousand tons of urea (high concentration nitrogen) large chemical fertilizer production line, 30 thousand tons 50 thousand tons of ammonium nitrate and nitric acid production plant and 6 thousand tons of melamine plant.

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