Global Ammonium Sulphate Prices Continues Bearish Momentum Amidst Seasonal Lull, Feb 2024

In February 2024, the global Ammonium Sulphate market experienced a continued decrease similar to the previous month. This decline is mainly due to the ongoing reduction in the cost of crucial raw material, Ammonia, leading to reduced production costs and consequently causing a drop in Ammonium Sulphate prices. Further, diminished demand from major end-user fertilizer markets, combined with global trade uncertainties and unfavourable weather conditions, significantly added to the downward trend in Ammonium Sulphate prices.

During February 2024, the Western region's Ammonium Sulphate market underwent a price decline, largely impacted by subdued sentiments resulting from reduced demand for fertilizers after the peak planting season. This phase typically sees a decrease in demand as agricultural activities ease off following planting. Additionally, demand from Brazil, a key importer of Ammonium Sulphate, was limited during this time due to the Carnival celebrations. By tradition, Carnival festivities cause a temporary slowdown in agricultural activities as workers engage in the events, leading to decreased fertilizer demand.

Additionally, unfavourable weather conditions in Europe contributed to subdued demand for fertilizers, including Ammonium Sulphate. The European Union (EU) witnessed varied weather patterns, with northern regions experiencing a cold spell, central areas encountering heavy rainfall, and dry conditions prevailing along the Mediterranean coast. The United Kingdom (UK) also witnessed mixed conditions characterized by abundant rainfall. In contrast, the Russian Federation experienced generally favourable conditions, benefiting from ample precipitation that improved soil moisture and bolstered agricultural activities. However, dry conditions persist in certain parts of the Caucasus region. These diverse weather conditions across Europe have had an impact on agricultural activities, consequently affecting fertilizer demand. The combination of subdued demand post-planting season, reduced activity due to Carnival celebrations in Brazil, and adverse weather conditions in Europe contributed to the decline in Ammonium Sulphate prices in the western market during February 2024.

Similarly, throughout February 2024, the Ammonium Sulphate market in China witnessed a downward trajectory, mirroring the trend observed in the previous month. A significant driver behind this decline was the declining price of the vital raw material, Ammonia, within the country. This decrease prompted a reduction in production levels, thereby exerting downward pressure on Ammonium Sulphate prices. At the beginning of the month, demand remained constrained from the domestic market due to the ongoing Lunar New Year celebrations in China. Nonetheless, following the conclusion of the celebrations, there was an evident increase in activity in downstream industries. Despite this uptick, demand for fertilizers, including Ammonium Sulphate, only began to recover in anticipation of the upcoming planting season. Nonetheless, the demand bounce fell short of expectations and had nominal impact on Ammonium Sulphate prices. Furthermore, there were anticipations that China would lift its export restrictions on fertilizers after the New Year celebrations. However, this expectation did not materialize, leading to the extension of restrictions on international demand. Consequently, the combination of subdued domestic demand and ongoing export limitations contributed to the persistent decline in Ammonium Sulphate prices in the Chinese market.

As per ChemAnalyst's analysis, the Ammonium Sulphate market is projected to maintain a downward trend in the coming months, to be driven by declining Ammonia prices and diminishing seasonal demand.