China Ammonium Sulphate Caprolactam Grade Market Update: Prices Fall as Buyers Stay Cautious

China's ammonium sulphate market moved lower during the week of June 26-July 2, 2026. Shandong coking-grade material fell to RMB 970-975/mt on July 2, while caprolactam-grade material in Shandong dropped sharply to RMB 1,100-1,170/mt. Using the working exchange-rate basis of USD 1 = RMB 6.8, these domestic references are approximately USD 143/mt for coking-grade material and USD 162-172/mt for caprolactam-grade material. These are domestic market indicators and should be reconfirmed for current export quotations.

Key Takeaways for Overseas Buyers

For buyers sourcing Ammonium Sulphate Caprolactam Grade, the main signal this week was a high-level correction. The caprolactam-grade price decline was much larger than the coking-grade adjustment because its previous price premium had become difficult for buyers to accept.

Export buyers should also watch granular demand and urea pricing. Brazil-related granular demand remains present, but terminal buyers continue to push down receiving prices. International urea prices are still low, which weakens sentiment for ammonium sulphate and limits the room for Chinese exporters and granular processors to raise offers.

Market Overview

During the week, domestic ammonium sulphate prices generally moved down. In Shandong, coking-grade ammonium sulphate moved from RMB 977-1,030/mt on June 25 to RMB 970-975/mt on July 2, with the high end falling sharply. Caprolactam-grade ammonium sulphate moved from RMB 1,300-1,330/mt to RMB 1,100-1,170/mt, down RMB 160-200/mt.

Related fertilizer markets were mixed. Urea in Shandong Linyi moved from RMB 1,810/mt to RMB 1,800/mt, while 45%S compound fertilizer in Shandong rose slightly from RMB 3,440/mt to RMB 3,460/mt. The small increase in compound fertilizer did not change the cautious procurement mood for ammonium sulphate.

Supply and Demand

Supply changed little overall. Caprolactam operating rates were around 70.36%, up 1.29 percentage points from the previous period, while coking-plant operating rates were broadly stable around 74.67%. The source material also noted that some by-product sources such as cyanuric acid, MMA and new-energy related plants had lower operation or maintenance, keeping the overall supply-demand relationship relatively tight.

Demand was not strong enough to support prices. Domestic industrial and agricultural buyers continued need-based procurement, and rare-earth related demand was general. Compound fertilizer operating rates were around 31.76%, slightly lower than the previous week, and downstream sulfur-based compound fertilizer margins remained under pressure.

Export and Granular Market

Export sentiment remained cautious. FOB China caprolactam-grade ammonium sulphate was reported at USD 180-190/mt on July 2, down USD 10/mt from the previous week. FOB China compacted granular offers were around USD 180-185/mt, with the high end down USD 5/mt.

Although Brazil is still an important destination for granular ammonium sulphate, terminal buyers are price-sensitive. Lower international urea prices continue to affect purchasing psychology, and buyers are more willing to wait or negotiate lower receiving prices. For buyers considering granular ammonium sulphate, fresh confirmation of FOB levels, bulk vessel availability and container shipment economics is necessary.

Inventory and Ports

Port inventory was broadly stable. Sample port inventory was around 895,000 mt, with Rizhao at 160,000 mt, Tianjin at 180,000 mt, Huanghua at 200,000 mt, Longkou at 30,000 mt, Putian Xiuyu plus Shimen'ao at 140,000 mt and Nanjing at 175,000 mt. Some vessels continued loading out, so later port inventory may slowly decline.

Market Outlook

The next period is expected to remain weak, but the low end may gradually stabilize while high-priced offers continue narrow adjustment. Supply is relatively stable, but terminal buyers remain cautious and bargaining pressure is obvious. International urea prices and policy-related uncertainty also keep market risk appetite low.

For overseas buyers, this means quotation timing matters. Buyers with firm demand may use the correction to compare offers, but they should avoid relying only on last week's price ranges. Current quotations should be checked by grade, packing, shipment form, destination market and shipment window.

RFQ Guidance

When requesting an ammonium sulphate quotation, buyers should specify grade, nitrogen content, crystal or granular form, packing, quantity, destination port, shipment window and document requirements. For bulk shipments, buyers should also clarify vessel timing, loading port and whether they need coking-grade, caprolactam-grade or compacted granular material.

FAQ

Why did caprolactam-grade ammonium sulphate fall more sharply this week?

Its previous price premium over coking-grade material was too wide, and high-priced offers faced shipment and acceptance pressure. This caused a stronger correction in caprolactam-grade prices.

What is the current Shandong coking-grade price reference?

On July 2, Shandong coking-grade ammonium sulphate was around RMB 970-975/mt, equivalent to about USD 143/mt using USD 1 = RMB 6.8.

How are export offers moving?

FOB China caprolactam-grade offers moved down to around USD 180-190/mt, while compacted granular offers were around USD 180-185/mt. Current offers should still be reconfirmed before purchase.

Is Brazil demand still supporting the granular market?

Brazil-related granular demand remains relevant, but terminal buyers are pushing down receiving prices because international urea prices are low and market sentiment is cautious.

What should buyers watch next week?

Buyers should watch international urea prices, Brazil terminal acceptance, Chinese port inventory, caprolactam operating rates and whether high-priced domestic offers continue to move lower.