en.Wedoany.com Reported - China will implement inspection and quarantine (CIQ) procedures for ammonium sulfate exports starting next week. Although this move is not expected to have a substantial impact on overall export volumes, it will extend the time required for cargo inspection.
Market sources indicate that, based on customs recommendations, ammonium sulfate exports will be placed under CIQ control from July 16. Relevant written guidance has been issued, and a formal notice is expected next week, which will clarify the specific operational details of the CIQ process.
Some market participants anticipate that the CIQ process will be similar to the model already applied to urea, typically involving on-site inspections of cargo at factories or ports and the declaration of the cargo's final destination.
The CIQ clearance mechanism enables Chinese authorities to regulate urea exports. Industry analysis suggests that the nationwide inclusion of ammonium sulfate under CIQ management aims to ensure accurate declarations of export cargo. This follows reports of misdeclared containerized urea and potassium chloride mixtures as ammonium sulfate, prompting Chinese authorities to intensify cargo inspections at some northern ports in late April.
The implementation of CIQ for ammonium sulfate is not expected to affect overall export volumes but will delay the availability of cargo. Local market participants and international traders anticipate some delays for cargo originally scheduled for July shipment. Overall, the initial implementation of the CIQ process may slow the pace of business negotiations.
There are currently no indications that a minimum price will be introduced. Some market participants note that such price control measures would be difficult to implement effectively, given that ammonium sulfate is hardly consumed directly in the domestic market and is primarily a byproduct of caprolactam production.
Customs data shows that China's ammonium sulfate exports reached a record high of 21.36 million tons last year. Despite a decline in industry operating rates, shipments from January to May this year still reached 8.37 million tons, a year-on-year increase of 20%.
Market participants have anticipated stricter CIQ controls on ammonium sulfate for months, and this expectation was finally realized in recent weeks amid a sharp price decline to multi-month lows.
In recent weeks, the decline in China's ammonium sulfate FOB prices has been sufficient to fully offset all gains from the first two months following the outbreak of the Middle East conflict, and has exceeded the extent of those increases.
Data shows that standard-grade ammonium sulfate prices rose by up to $113 per ton between late February and late April, but have since fallen by up to $141 per ton. Meanwhile, compacted-grade ammonium sulfate prices rose by up to $115 per ton after the conflict but began to decline from early to mid-April, subsequently falling by up to $135 per ton.
