Asia Ammonium Sulphate Market was Bearish Amidst Low-Cost Support

New Delhi: The Asian Ammonium Sulphate market has been adversely affected by the ongoing decline in the cost support from raw materials and the muted demand from the downstream fertilizer sector. Additionally, the reduction in buying and selling activity on domestic and international markets is continuing, keeping spot transactions below normal. Further, concern about global inflation pressures the price of Ammonium Sulphate and creates several problems throughout the value chain.

Several market participants claim that increased stockpiles and weak demand are to blame for the ongoing price declines of Ammonium Sulphate in the Asian spot market. The market sentiments for several essential commodities, including Ammonium Sulphate, have been under significant pressure because of the stagflation in the global economy and the escalating geopolitical dispute with the United States. Additionally, the world's second-largest economy is facing economic woes due to the rising inflation in the region, which has been linked to the country's weak downstream domestic demand.

Ammonium Sulphate's price has been sliding downward in the Southeast Asian region for the past several weeks. In addition, market sentiments also declined since the production cost, and startup for Ammonium Sulphate has decreased. As a result, the market value of Ammonium Sulphate remains bearish. Moreover, logistics deterioration is the leading cause of the price drop for Ammonium Sulphate. Similar to upstream demand, downstream demand remained negative due to Indonesia's market's weak economy.

Prices of Ammonium Sulphate will probably follow the downward trend in the Asian market due to the poor cost of the raw material Ammonia and Sulphuric acid, according to ChemAnalyst pricing data. In the meantime, in the following weeks, the downstream sectors' fundamental demand may be under pressure due to the rising global inflation.