In May, the domestic liquid ammonia market continued its decline from April, but the pace of decline slowed slightly. According to the commodity price analysis system monitored by the Business Society, on May 31st, the cumulative decline in Shandong, the main producing area, was 7.22%. The manufacturers in Shandong reduced prices by between 200-300 yuan/ton this month. On the raw material side, looking at the monthly price fluctuation chart of the liquid ammonia industry chain from the Business Society, the entire industry chain experienced a decline, with both upstream natural gas and coal prices falling significantly. In particular, the price of thermal coal dropped by 17.68%, which was a bearish factor for the liquid ammonia market. This also impacted both supply and demand sides, leaving the market relatively bearish overall. On the production side, high inventory pressures forced companies to continue reducing prices. On one hand, there was an increase in supply and a slowdown in factory shipments, leading to rising inventory pressure. On the other hand, imported supplies were impacting the domestic market. Looking at the demand side, downstream products like urea and compound fertilizers were not strong enough to support their prices, resulting in a general downward trend. Urea and ammonium chloride prices fell heavily. Especially for the downstream product ammonium chloride, the decline was nearly 28% this month. The weakness in downstream sectors has further exacerbated the supply-demand contradiction. Currently, the mainstream price for liquid ammonia in Shandong is between 2900-3100 yuan/ton. Forecast: The downstream urea and compound fertilizer markets will continue to be weak, and the process of liquid ammonia enterprises depleting inventory will be slow. It is expected that the pressure of supply will still exist in the near future. However, recent downstream agricultural demand recovery could lead to a halt in the decline of liquid ammonia prices, and it may enter a range-bound fluctuating phase later, with a significant breakthrough unlikely.