Continued Downturn in Ammonium Chloride Market Amid Weak Demand and Weather Disruptions

Ammonium Chloride prices continued to decline in the first half of September, extending the downward trend from August 2024. The key driver behind this price drop has been weakening demand from the fertilizer sector, as adverse weather conditions, including windstorms and heavy rainfall, have reduced agricultural activity, directly impacting the need for Ammonium Chloride. Furthermore, despite ongoing port congestion, lower freight rates have facilitated more affordable imports, exerting additional pressure on Ammonium Chloride prices. The combined effect of diminished demand and improved logistics has reinforced the bearish trend in the Ammonium Chloride market.

In the North American market, Ammonium Chloride prices continued their downward trajectory during the first half of September 2024, driven by weak summer demand and unfavorable weather. Anticipated international demand, particularly from India, did not materialize after India's National Fertilizers Limited (NFL) extended its shipment window until October 31^st. This delay indicated no urgency for securing additional Ammonium Chloride volumes ahead of the Rabi season, further softening global demand, which was expected to alleviate the oversupply in the U.S. market. Domestically, demand for Ammonium Chloride remained muted, heavily impacted by Tropical Storm Francine, which raised concerns about potential crop damage and delayed post-harvest fertilization.

Despite these factors, the U.S. has maintained adequate inventories of domestically produced Ammonium Chloride, stabilizing supply levels. However, looming labor unrest poses additional challenges. The International Longshoremen's Association, representing workers at 36 major U.S. ports, has warned of a potential strike if a new labor agreement is not reached by September 30^th. This could exacerbate disruptions, particularly affecting European and Latin American imports of Ammonium Chloride, though Asian imports may be less impacted. The combination of weak domestic demand delayed international orders, and possible labor strikes has created a challenging outlook for the North American Ammonium Chloride market.

Similarly, Ammonium Chloride prices in the Asian market, particularly in China, plunged due to softening demand and growing inventories. Seasonal demand for Ammonium Chloride has dropped, while adverse weather conditions, including Typhoons Yagi and Bebinca, have raised concerns over potential crop damage. This has led to cautious purchasing behavior, with buyers hesitant to commit to bulk Ammonium Chloride orders. Additionally, the Mid-Autumn Festival holiday further weakened domestic demand, as many businesses closed. Despite a slowdown in production, Ammonium Chloride inventories remain high, worsened by port congestion at major Chinese ports, resulting in delays and stockpiling. These combined pressures have reinforced the downward price trend for Ammonium Chloride in the region.

As anticipated by ChemAnalyst the price of Ammonium Chloride may decline in the global market in the forthcoming days amidst faded seasonal demand and inadequate weather conditions.