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Ammonium Sulfate: Three Good Can Blow Heating Industry?

Since late July, ammonium sulphate market mutations, instead of the rising trend of the first half of the year fell into, especially prices in local areas such as Hebei, Shanxi, the highest decreases up to hundred. This also led to the industry's strong concern for the ammonium sulphate trends in the second half. From fertilizer, rare earth and export market demand of the three main positive ammonium sulfate, can put ammonium sulphate industry back on track?

Agriculture News to boost demand

Large consumption of fertilizer is ammonium sulfate. According to incomplete statistics, over thousands of compound fertilizer production enterprises in China, more than 32 million tons of annual production. Mainly in Shandong, Jiangsu, Hubei, and Henan provinces. In recent years, with the rise of coal, Shanxi, Xinjiang, Inner Mongolia, Liaoning and other provinces to build and put into operation a number of chemical fertilizer enterprises, demand for ammonium sulphate increased rapidly, and became the main force in the domestic ammonium consumption.

According to the Henan company of Henan province coal gasification company, a production charge, during the process of compound fertilizer, compressive strength and round-grained in order to improve the fertilizer granules, dry loads to reduce the production process, to add 0.05 tons per tons of compound fertilizer ammonium sulfate, more is used in production of sulfur fertilizer ammonium sulfate, ammonium sulfate 1.5 million tons this year demand. Plus part of the direct application of nitrogen fertilizer, ammonium sulfate fertilizer industry demand in 2015 in China is expected to surpass 2 million tons.

In 2015, the annual unified export duty tax rates n and p. The implementation of this policy, conducive to improving the fertilizer prices and export volumes. Datang Ke qi in Inner Mongolia coal-gas company business manager Liu believes that chemical fertilizer export promotion of ammonium sulfate will form the basis of good.

"According to our calculations, chemical fertilizer export off-season time of year is very small, therefore, nitrogen and phosphorus export tariffs have decreased substantially from the previous year, particularly in recent years the international context of steady growth in demand for fertilizer, fertilizer exports are expected to continue to grow in China, it will also pull ammonium sulphate industry recovery. "Datang Ke qi in Inner Mongolia coal-gas company business manager Liu Jie said.

First, in the middle of this year clearly stated, in the context of economic slowdown to continue strengthening agriculture as the Foundation, the promotion of farmers ' income steadily, increasing food production, expanding the acreage. On this basis, strengthen agricultural ecological governance, promotion of bio-organic fertilizer, providing basic protection for fertilizer demand continued to grow. And with the country "along the way" strategy implemented through multidimensional output such as capital, technology, products, promote China's chemical fertilizer industry in international markets to enhance competitiveness in the international market, thus further increasing exports easing domestic surplus production capacity, indirect drive the massive demand of ammonium sulfate, is helping industry to pick up another major power in the future.

Export growth, power-off the hook

According to customs statistics, domestic ammonium sulfate export growth in recent years. 2013 ammonium sulphate exports 2.833 million tons, 49% of the total domestic production of 2014 domestic ammonium sulphate exports amounted to 4.155 million tons, accounted for more than 59% of domestic production, 10% compared with the previous year. According to statistics, 5 months before the 2015 ammonium sulphate exports more than 2.27 million tons, expected export volume this year is expected to exceed 5 million tons, again increased substantially.

Ammonium sulphate production and export has become the world power status in China, especially in the market plays a dominant role in the region. From Turkey and Southeast Asian importers and exporters information feedback showed that ammonium international market prices of Qi Sheng this year, more than international market price is always higher than the domestic 10% and exports remain steady growth trend in the second half, which is in the international and domestic economic downturn this year, domestic market ammonium sulphate could continue to pick up one of the main reasons.

Fuqing from inspection and Quarantine Bureau was informed that the first ammonium sulfate export enterprises in Fujian province in the first quarter of this year Chen Yiu Loong exit 129 days, 75,900 tons, $ 10.128 million value of batches, have both exceeded last year's total exports.

Yingkou, Liaoning, an exporter said exports of ammonium in recent 3 years, annual growth of more than 10%. Meanwhile, demand for countries to restrict exports of rare earth industry industry declined, the sharp growth in exports and a drop in demand for the rare earth industry has changed re, the pattern of exports of fertilizers, the troika supports market. In the rare earth industry needs decline but also the high-end prices continued to drop, the domestic market price of export check. For example see port of some large domestic orders increased manufacturer prices soon will appear raised on the Mainland, 3 ~ in May this year in addition to the seasonal factors of growth of domestic demand, ports of several large orders for the market's rapid rise contributed to the role of lifting more than 44%, and nearly two-year highs. And this year will be the norm, the industry pick up more and more affected by the export.

Rare earth deal driving prices

In April this year, the Ministry of Finance issued the customs tariff Commission of the State Council concerning the adjustment of exports tariff notice, announced that from May 1 to lift the rare earths, tungsten, molybdenum and other products of export duties. For the world's largest producer and exporter of rare earths in China's case, re cancellation of tariffs of natural significance. Meanwhile, consumers of rare earth enterprise as ammonium sulfate, re the new deal also brought ammonium sulfate plus ammonium existing consumption pattern change will play a decisive role.

Data shows that first half of the year, China rare earth export quota management, United States economic recovery and many other factors, China's dominant producer Inner Mongolia rare earth exports surged, exported 2663.8 tons of rare earths, an increase of 36.5%. To the United States, and Japan and other countries amount of rare earth exports growth to Japan of rare earth for export grew by about 130%.

In rare earth export duties were canceled, on May 14, the Ministry of land and resources issued the 2015 control index of total rare earth mining law. The circular display in 2015, rare earth mining (rare earth oxides REO) mining indices of total quantity control of 105,000 tons, unchanged from 2014, higher than that in 2013, the total index of 11,000 tons.

In this regard, analysts said the mining index last year and the same number, and abolish tariffs and export quotas on rare earth exports to some extent. But in the long run, will be release on the State control over the rare earth mining index and tilt to large rare earth enterprise. China rare earth separation capacity is currently mined aggregates or operative production plan 5~8 times. In order to protect resources and the environment, control and gradual opening policy implementation plan.

It is understood that of rare earth in China has two North-South, mining rare earth minerals in the North is not required for ammonium sulfate, and areas in the South and heavy rare earth, mainly concentrated in Jiangxi, Guangdong, Guangxi, Hunan, Sichuan, Hubei, rare earth mining using ammonium sulfate as raw materials, mining production 1 metric tons of rare earth ores is about 5 tons of ammonium sulfate, high about 8 tons. Mining needs to use ammonium sulfate at around 150,000 tonnes per year.

According to insiders, ammonium sulphate has three main demands of the market, including fertilizer, and export of rare earths. From the absolute number of rare earths accounts for at least, overall demand is less than 10%, but the effect on ammonium sulphate prices great. 2011 ammonium sulphate prices, one of the important reasons is driven by the demand. 2011 rare earth market is very hot, prices turned many times during the year, takes fire sulfur market, which once reached a new high of ammonium sulfate contract price 1800 Yuan/ton. Ammonium sulphate prices hit new records, are purchasing rare earth manufacturers. Therefore, there is no denying that future production growth will be supporting ammonium sulphate industry to pick up a big plus factor.

Experts estimate that the 2015 ammonium sulphate industry demand is expected to exceed 1.2 million tonnes, although not amounting to the largest in previous years, but the market is expected to increase its leverage effect. Ammonium sulphate in rare earth materials, at cost share of small, high-end prices can still pull the average market price of ammonium sulfate, so industry-driven price leverage in ammonium sulphate industry is expected to be amplified, a small increase in demand driven price rise, this ammonium sulphate industry out of its slump this year will also play a significant role in boosting.

Prices are expected to record high

Ammonium sulphate prices later this year, because there are still 400,000 tons in the second half caprolactam grade ammonium sulfate by-product may put into operation some uncertain factors exist, such as the stock market, difference in views on the future of the industry, but most people remain optimistic about the future.

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