In May, the domestic liquid ammonia market experienced fluctuations and an increase, showcasing a pattern of initial rise followed by a decline. According to the commodity market analysis system from Business Sheets, liquid ammonia recorded a 3.91% increase in May. By the end of the month, the mainstream price in Shandong was between 3000-3200 RMB/ton. Specifically, mid-May saw the continuation of the rebound momentum from late April. In May, factory prices for liquid ammonia continued to rise steadily, with the overall operating rates of domestic manufacturers significantly decreasing. This was particularly evident in the northern main production areas where the amount of ammonia released was generally less. In Shandong, Hebei, Shanxi, and other regions, there were concentrated maintenance periods, leading to a noticeable decrease in the release of ammonia in the northern main production areas. Additionally, there were units in the Central Plains that experienced malfunctions, causing a tight supply of ammonia in the market. Consequently, the supply volume dropped noticeably at the same time. As a result, the factory price of liquid ammonia was adjusted several times on average over the week after the holiday, with a cumulative adjustment of between 200-300 RMB/ton. The market faced a shortage situation. After mid-May, the liquid ammonia market reversed, and the market trend rapidly changed, with widespread falls across various regions. The price in Shandong fell from 3300 RMB to around 2900 RMB in the latter half of May. Moreover, the Northwest and Inner Mongolia also followed similar declines as seen in regions such as Shanxi and Shaanxi. The main reason for this was the increased supply pressure, with a significant amount of liquid ammonia being transferred from Shandong, Hebei, and other regions, increasing the availability of ammonia. Meanwhile, most units in Central Plains and Northwest maintained stable operation, leading to increased supply and thus, manufacturers mostly cleared their stock through price reductions to ease the pressure. As the month drew to a close, liquid ammonia prices rebounded, primarily due to manufacturers maintaining low inventory levels and considering unit failures impacting operations, leading to a slight tightening in supply in northern main production areas like Shandong, Hebei, and Shanxi. Additionally, some units planned production cuts, creating a positive market atmosphere. Especially during the peak season for agricultural demand, purchases did not slow down, indicating continued high demand. Looking ahead, Business Sheets analysts believe that regarding supply side, due to anticipated maintenance periods for units, the tight supply situation in the northern main production areas is likely to persist for some time. Ammonia prices will be supported by supply. Regarding demand side, agricultural demand remains fundamental, but the increase may slow down due to decreased downstream compound fertilizer operating rates, potentially slowing down purchases. Furthermore, there has not yet been an agricultural preparation period, and the upcoming two weeks are considered a gap in agricultural demand, without an expected period for concentrated purchase. Overall, liquid ammonia prices will remain strong in the near term due to reduced supply. Short-term, influenced by reduced supply, there is no doubt that prices could still rise. However, with weak demand expectations in late June and early July, supply and demand dynamics could become more intense, potentially leading to fluctuations in liquid ammonia prices.