Core Viewpoint - The domestic ammonium sulfate market has experienced a rebound after a period of decline, driven by factors such as expected production decreases, potential export growth, and increased demand from downstream markets [2][3][4]. Group 1: Production Expectations - As of April 3, the capacity utilization rate of domestic coking enterprises was 72.68%, showing little change from the previous month. However, production is expected to decline due to maintenance at several coking plants [3]. - The comprehensive operating rate of domestic caprolactam plants was 87.19% as of early April, a decrease of 4.47% from late March, indicating a reduction in overall production capacity [3]. - The expected decline in production from coking, caprolactam, and flue gas desulfurization processes is likely to support domestic ammonium sulfate prices [3]. Group 2: Export Potential - In the first two months of the year, ammonium sulfate exports totaled 2.57 million tons, a year-on-year increase of approximately 39%. The demand for ammonium sulfate in international markets is expected to rise, particularly in Latin America [4]. - The price of urea has stabilized and increased from a low of 1500 yuan to over 1900 yuan in April, providing strong support for the ammonium sulfate market [4]. Group 3: Downstream Demand - The operating rate of domestic compound fertilizer enterprises increased from 26% in early February to over 54% by the end of March, indicating significant growth in downstream demand for ammonium sulfate [5]. - The market price of compound fertilizers rose by 13% from mid-February to mid-March, contributing to the recovery of the ammonium sulfate market [5]. - Recent news regarding the lifting of restrictions on rare earths in southern regions has generated positive market sentiment, further supporting demand [5].