In November, domestic ammonia prices significantly increased, according to the commodity market analysis system by the Business Herald. The main reason for this is that, with stable downstream demand, many units were shut down, resulting in a decrease in operating rates and an increase in supply tension. By the end of the month, the mainstream price of ammonia in Shandong was between 2450-2650 yuan/ton. In terms of supply, in the first ten days, due to environmental inspections in northern regions affecting some manufacturers' production schedules, and combined with temporary shutdowns of certain units, the supply of ammonia in northern regions decreased. However, there was not much pressure on supplies in Shandong, Hebei, Anhui, and two lake areas, leading to significant price increases. Firmer enterprise quotes were frequently issued. Mid-month saw a period of market fluctuation adjustments, with prices slightly falling as environmental inspections concluded. By the latter part of the month, the market returned to basic supply and demand balance, with some local stabilization in the market, and slight price increases in Shandong, though not significant. On the demand side, downstream demand improved significantly, with agricultural demand improving, increased export volumes, especially with the higher operation rate of compound fertilizers, which significantly increased demand for urea. Urea prices fluctuated upwards throughout November, with an increase of 3.5%. Additionally, domestic industrial demands followed suit, coupled with a decrease in inventory caused by earlier consumption by ammonia plants, manufacturers showed a clear willingness to support prices, allowing urea prices to be supported. Forecast: According to analysts from Business Herald, the rise in ammonia prices this month was primarily driven by favorable supply dynamics. Although there was improvement in the demand side, the increase was not large. It is expected that entering December, the expectation of resuming operations at maintenance units in northern regions will alleviate the tight supply situation. This may somewhat offset the benefits of increased compound fertilizer operation rates, leading to a cooling off of the ammonia price rally. Considering all factors, it is anticipated that the high price trend of ammonia will cool down, with prices returning to a range of fluctuations.