In August, domestic liquid ammonia prices did not continue the upward trend from last month but instead fell significantly, surpassing the previous month's increase. According to the commodity market analysis system of Business Sheets, the decline in Shandong region's liquid ammonia prices was 12.74% in August. By the end of the month, the mainstream price of liquid ammonia in Shandong was between 2200-2350 yuan/ton. The resumption of production and high inventory levels have put pressure on the supply side. The supply and demand structure continued to be oversupplied. Entering August, the operation rate continued to increase. Previously shut-down enterprises gradually resumed operations, coupled with an increase in trans-ammonial conversion. High inventory pressures led factories to continue adjusting their prices downward. Moreover, import volumes increased without significant decrease, with low-priced foreign supplies impacting the domestic market. The supply was still oversupplied. Major Shandong plants repeatedly reduced the factory price of liquid ammonia, ranging from 300 to 350 yuan/ton. From the demand side, during the traditional off-season, downstream products like urea and compound fertilizers were supported by less, industrial demand remained fundamental, with little fluctuation. The weak downstream demand further exacerbated the supply and demand contradiction. The cooling down of the industrial chain, mainly due to weak downstream performance, is evident from the liquid ammonia industry chain graph. The environment upstream and downstream of liquid ammonia showed weak performance, with the upstream natural gas continuing its weakness, with a monthly decline of 5.09%. Especially in downstream areas, which remain generally cold, with more declines than increases, and heavy losses with minor gains. Urea remains unheated, with monitoring showing a drop of 5.79% in August. This is mainly reflected in weak downstream demand, especially during the agricultural off-season, where the expected increase in compound fertilizer production has been underwhelming. The terminal operating rates in the industrial demand sector also show downward trends. The market is primarily driven by basic demand, constraining the recovery of the ammonia market. Market forecast for September: Business Sheets analysts believe that in terms of supply, next month's market supply and demand pressure will not diminish, with operations being open and closed at different times, affecting the situation weakening. The willingness of companies to hold prices may manifest, potentially reducing the room for future declines. Additionally, in the future, the increase in trans-ammonial enterprises might lead to an increase in ammonium output. The supply and demand pressure in September cannot be overlooked. In terms of demand, in the short term, demand remains stable, with expectations possibly weaker in the later stages. On one hand, the peak season for farm use has not yet begun, leading to quiet transactions. On another, industrial demand remains fundamental, overall, the downstream application of liquid ammonia might continue to drag down its price recovery. Considering all factors, recent liquid ammonia prices are likely to linger at low levels, and in the future, amidst supply and demand competition, the ammonia market might transition into a fluctuating range, with further narrowing of price fluctuations. Future attention should be paid to news about factory equipment start-ups.