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Ammonium Sulphate Market Surge Amidst Supply Chain Disruptions in May 2024
Ammonium Sulphate Market Surge Amidst Supply Chain Disruptions in May 2024

Ammonium Sulphate Market Surge Amidst Supply Chain Disruptions in May 2024

  • 07-Jun-2024 4:45 PM
  • Journalist: Stella Fernandes

In the final week of May 2024, the global Ammonium Sulphate market experienced divergent market trends. A significant surge in prices was reported within the North American market. Despite limited cost pressures from essential feedstock ammonia, several other factors contributed to this upward trajectory. Notably, global Ammonium Sulphate producers reported strong domestic demand, which has been a major driver of price increases. However, the European market experienced stagnancy in Ammonium Sulphate prices.

In the North American market, Ammonium Sulphate prices have surged by 1.1% during the past week. This price increase can be attributed to various key factors. Producers have reported strong domestic demand, a critical driver of the price rise. Concurrently, delivery disruptions within the country, caused by a shortage of feedstock Ammonia, have further exacerbated supply constraints. With the peak planting season approaching, the downstream fertilizer market has seen a resurgence in demand, adding to the upward pressure on prices. Additionally, the absence of China from the global fertilizer export market has led Asian buyers to turn to North America to fulfil their needs. This shift has resulted in increased activity and demand for Ammonium Sulphate in the region, contributing to the widening gap between supply and demand. The combined effect of robust domestic demand, delivery disruptions due to feedstock shortages, the seasonal spike in fertilizer demand, and increased international interest have created a scenario where Ammonium Sulphate prices have been pushed higher.

In contrast, the European Ammonium Sulphate market experienced stagnation during the concluding week of May 2024, reflecting the trend observed in the previous week. According to insights from various market participants, import activity in North-West Europe has remained steady despite a recent increase in natural gas prices driven by supply concerns. Consistent shipments from Algeria have continued to arrive on time, ensuring a robust availability of Ammonium Sulphate in the region. During this period, demand from downstream sectors, especially the fertilizer market, remained steady. However, persistent weather challenges have raised concerns among farmers regarding the upcoming planting season. In particular, heavy rainfall in the Netherlands and Germany has significantly impacted agricultural activities, caused delays and raised fears of potential crop damage. On the contrary, the United Kingdom has been able to sustain its planting activities despite the adverse weather conditions. The interplay of these factors has led to a stabilization of Ammonium Sulphate prices in the European region for the week ending May 31st. The steady import activity and consistent demand from the fertilizer market, coupled with ongoing weather-related challenges, have collectively contributed to maintaining price stability, avoiding the fluctuations seen in other regions.

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