Ammonium Sulphate Prices Rise in Asia, Steady in Europe Amid Mixed Feedstock Costs

The Ammonium Sulphate market exhibited divergent trends in the global market during the first half of July 2024. While prices increased in Asian countries, they remained stable in the European region. However, the price of essential feedstock Ammonia was declining during the same period, but its cost pressure remained restricted on Ammonium Sulphate priced whereas several other factors contributed to the price surge.  Global Ammonium Sulphate producers have highlighted robust domestic demand as a major factor contributing to the price increases.

In the European region, the prices of Ammonium Sulphate remained stagnant during the first half of July 2024, despite a shortage in supplies. Statistical data gathered from various market participants reveals a significant decrease in the export of agricultural products via road transport during the concluding week of June 2024. These decreases amounted to a 20% decline compared to the previous month, highlighting subdued demand and low trade activity in the sector. As of the concluding week of June 2024, approximately 188,000 tons of agricultural products had been exported across borders.

During this period, demand for Ammonium Sulphate remained moderately paced. Excessive rainfall in the European Union adversely affected crop growth and impeded field operations, particularly in Austria, France, Italy, and the Netherlands, leading to reduced potential yields. Conversely, the United Kingdom experienced favourable weather conditions that partially aided the recovery of winter wheat, although yields are expected to remain below the five-year average. In Turkey, recent wet and warm weather conditions supported grain filling, while in Ukraine, harvesting commenced 2-3 weeks earlier than usual due to warm weather conditions. Despite predominantly dry weather in recent times, agricultural prospects outside of conflict zones remain promising. Overall, these varied weather conditions across Europe have contributed to relatively stable demand for Ammonium Sulphate, thus supporting price stagnancy.

In contrast, the Chinese Ammonium Sulphate market experienced a slight surge during the first half of July 2024. This price increase was primarily driven by rising costs of essential feedstock, particularly sulfuric acid, which saw a price increase during this period. The higher cost of sulfuric acid led to a reduced production rate, thereby exerting upward pressure on Ammonium Sulphate prices.

Conversely, the price of another crucial feedstock, ammonia, was on a declining trend; however, its reduced cost had a limited impact on Ammonium Sulphate prices. The modest overall price increase of Ammonium Sulphate can also be attributed to a last-minute rise in domestic fertilizer market inquiries. This renewed demand was primarily driven by fruit growers concluding their summer crop applications, leading to an uptick in the market's activity and supporting the slight increase in prices. This scenario highlights the complex interplay of feedstock costs and seasonal demand patterns in influencing Ammonium Sulphate market dynamics.