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China’s amsul exports at record high amid urea shortage

  • Market: Fertilizers
  • 25/04/18

China's ammonium sulphate (amsul) exports hit a record high of 1.5mn t in the first quarter of 2018, as buyers looked to offset reduced urea supply.

Exports rose by over 11pc year on year to the highest first-quarter figure since GTIS records began in 1995.

Indonesia led recipients, taking around 300,000t, a sharp rise on 110,000t a year earlier.

Turkey with 241,000t, El Salvador with 71,000t and Myanmar (Burma) with 70,000t were among the other countries that registered increases.

The rising amsul shipments are mostly attributed to a stark shortage of Chinese urea. Chinese exports in the first quarter of 2018 slumped to just 295,000t from 1.2mnt a year earlier, amid a mix of high domestic prices and reduced production.

Amsul, a potential alternative source of nitrogen, has been more readily available for export and caprolactam amsul prices have traded fairly narrow within a range of $110-120/t fob China on an average basis this year, adding to its attractiveness for buyers.

By comparison, urea exports to Indonesia fell by nearly 100pc in the first quarter of 2018 and deliveries to Myanmar dropped by 43pc.

Indonesia's rising amsul appetite is also partly the result of more favourable weather conditions supporting palm oil sector growth, which has led to an increase in demand for several fertilizers in recent months, including phosphate rock and potash.


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