For the Quarter Ending March 2024
North America
The North American Ammonium Sulphate market experienced optimistic market sentiments throughout the first quarter of 2024. At the onset of the quarter, a modest upswing in the demand for Ammonium Sulphate was observed in both the North American fertilizer markets, attributed to improved weather conditions within the country.
Further, demand from importing South American market also revived amidst ongoing planting season of crops such as Corn, Cotton, and Sorghum after relief from prolonged drought conditions in Rio de Janeiro, brought about by torrential rain, marked a positive development in the region. However, as the month progressed, a reduction in production activities became apparent due to freezing temperatures and snowstorms. Severe winter conditions led to the closure of the U.S. Nitrogen LLC plant in Tennessee and the Yara/BASF JV plant in Texas, raising concerns about broader supply chain impacts.
Additionally, a disruption in the Ammonia gas pipeline at the Bethpage ice rink, resulting from a compressor malfunction, caused a shortage of Ammonia in the region. This shortage of a critical raw material exerted upward cost pressures on downstream derivatives, notably affecting Ammonium Sulphate prices. Overall, the price of Ammonium Sulphate in the North American region experienced an upsurge compared to the corresponding quarter of the previous year. As of the final quarter, the price for Ammonium Sulphate FOB Illinois in the USA stood at USD 340/MT.
APAC
In the first quarter of 2024, the pricing dynamics of Ammonium Sulphate in the Asia-Pacific (APAC) region presented a varied landscape, with South Korea emerging as the market most significantly influenced. Throughout the quarter, South Korea witnessed a notable escalation in prices, attributable to a confluence of factors extending beyond the conventional realms of influence. Central to this pricing surge was the sustained robust demand from the downstream fertilizer sector. Despite economic uncertainties, the fertilizer industry maintained its Intensity, driving continued demand for Ammonium Sulphate. However, this demand was juxtaposed against a backdrop of supply challenges and disruptions in the global supply chain. One pivotal event exacerbating supply shortage was the occurrence of plant shutdowns, notably including the Namhae Chemical Corporation. The facility endured flooding, hampering Ammonia production and consequently disrupting the supply chain for Ammonium Sulphate. The resultant scarcity of vital feedstock exerted upward pressure on production costs, contributing to the overall price surge in the market. Furthermore, the absence of China from the fertilizer export market during this period prompted Asian buyers, including South Korea, to explore alternative sources for Ammonium Sulphate. This shift in procurement strategies further accentuated the upward trajectory of prices. As the quarter drew to a close, the market in South Korea reached a price of USD 155 per metric ton for Ammonium Sulphate 21% Spot- Ex-Daejeon.
Europe
The European Ammonium Sulphate market faced a challenging first quarter in 2024, characterized by a substantial 1.8% decline in prices in Germany. This decline was primarily attributed to reduced demand from the downstream fertilizer sector, compounded by an oversupply of Ammonium Sulphate and muted overall demand. Additionally, market sentiments were dampened by trade uncertainties and unfavourable weather conditions, particularly in Russia. The weather across Europe varied significantly during the quarter, with cold spells in the northern regions, excessive rainfall in central areas, and dryness in the Mediterranean. These weather patterns influenced agricultural activities and fertilizer demand, further contributing to the subdued market conditions. Despite these challenges, the temporary maintenance shutdown of the Novomoskovskiy Azot (Eurochem Group) plant had minimal impact on prices. However, ongoing farmers' protests, fuelled by rising energy prices, played a significant role in reducing farmers' buying enthusiasm. These protests added further pressure on the already subdued demand in the fertilizer sector. In response to the inventory pressures faced by traders, various strategies were employed, including adjustments to fertilizer prices, including ammonia. These efforts aimed to alleviate the impact of declining demand and lower production rates on market dynamics. However, despite these measures, prices continued to decline throughout the quarter.
For the Quarter Ending December 2023
North America
In the fourth quarter of 2023, the North American Ammonium Sulphate market faced several challenges that impacted prices. Firstly, there was an oversupply of Ammonium Sulphate in the market, exacerbated by delayed exports and high freight charges.
This surplus availability led to a narrowing gap between demand and supply, resulting in a decline in prices. Further, the conclusion of the peak fertilizer season in the United States and subdued demand from international markets, particularly Brazil, further contributed to the downward pressure on prices. Another factor influencing prices was the bottleneck in the Panama Canal, which caused delays in shipments and accumulation of inventories within the country. However, despite these challenges, the demand for Ammonium Sulphate remained firm in the domestic fertilizer sector. Furthermore, some shipping companies are opting to bypass the Suez Canal due to concerns about potential rebel attacks, choosing alternative trade routes instead.
The limitations at the Panama Canal have compelled certain shippers to reroute exports, including Ammonium Sulphate, through the Suez Canal to access Asian markets. If the constraints at the Suez Canal persist, it may become increasingly challenging for the US to export Ammonium Sulphate, potentially resulting in an oversupply and subsequent reduction in prices. As a consequence of delayed shipments to the international market, there has been an accumulation of Ammonium Sulphate inventories within the country. The confluence of these factors has contributed to the stabilization of Ammonium Sulphate prices.
APAC
The fourth quarter of 2023 was challenging for the Ammonium Sulphate market in the APAC region. The market experienced a significant decline in prices, with South Korea being the most affected country. The main factors contributing to this downturn were the abundant availability of the material, persistent weak demand from the Asian region, and a decline in feedstock prices. After China’s National Development and Reform Commission (NDRC) has continued to halt exports of fertilizers there is surplus availability of material in the market. Further, with the autumn season sweeping away demand for Ammonium Nitrate from the end-user fertilizer market remained subdued. Additionally, manufacturing activity in South Korea showed signs of stabilization after a prolonged contraction period, leading to a slight increase in production and a mild reduction in new orders. However, the overall demand for Ammonium Sulphate remained low, and the market was characterized by high supply levels. However, later the prices increased by a significant margin. Increasing the price of essential feedstock Ammonia prompted higher production costs thus exerting upward cost pressure on Ammonium Sulphate prices. During this period, there was an absence in imports from the European Ammonium Sulphate market. The redirection of merchant ships from the Red Sea, prompted by the imminent threat of attacks from Houthi militants off Yemen, resulted in a notable surge in freight charges as many shippers altered their shipping routes. However, demand from the significant downstream fertilizer industry remained subdued, as the peak planting season had concluded.
Europe
The Ammonium Sulphate market in Europe during the fourth quarter of 2023 witnessed several factors that led to the declining price of Ammonium Sulphate in the market. Firstly, demand from the fertilizer industry remained subdued due to the completion of the peak planting season. Further, unfavorable weather conditions, including storm Ciaran and heavy rainfall, hindered the planting of winter crops, further dampening the demand for Ammonium Sulphate. Furthermore, the availability of the product in the global market was high, contributing to a surplus and putting downward pressure on prices. As December approached there was a major disturbance in a crucial trade route. The recent attacks on Red Sea trade by Yemeni rebels raised concerns about the safety of maritime traffic in the region, leading to disruptions in Red Sea trade that are expected to substantially impact global Ammonium Sulphate supplies. Shippers also imposed extra fees amid the trade disruption in the Red Sea, making Asian consumers hesitant to make bulk purchases. This has consequently led to a surge in inventories within the European market. The interplay of these factors prompted towards narrowed gap between demand and supply thus supporting the current price dip.
For the Quarter Ending September 2023
North America
The North American Ammonium Sulphate market underwent a period of mixed sentiments. In July, prices took a dip, largely due to the struggling performance of the downstream fertilizer sector. Prolonged drought conditions in the region further weakened the demand within this sector. Reduced exports of Ammonium Sulphate from the USA to other countries, caused by low water levels in the Panama Canal, led to an oversupply within the domestic market. Conversely, August saw a notable price surge as international demand picked up in anticipation of the upcoming planting season. Domestic demand remained relatively stable during this time, except for Minnesota, which faced severe drought conditions, resulting in procurement challenges. Furthermore, the Consumer Price Index increased by 0.6% in August 2023, with a 0.1% rise in the Natural Gas Index, supporting the rising price trend. However, in September 2023, the US Ammonium Sulphate market witnessed a significant price decrease. Domestic fertilizer demand was moderate, influenced by the upcoming Fall barley planting season, while international demand, especially from Brazil, remained strong due to their focus on corn and soybean cultivation. Reports from industry participants indicated modest growth in manufacturing production but a sharp decline in the new order index, reinforcing the market's trend of lower prices.
APAC
The North American Ammonium Sulphate market displayed mixed sentiments. In July, rising Ammonium Sulphate prices were influenced by various factors, including increased costs of essential feedstock, strong demand from both international and domestic fertilizer markets, and supply chain constraints. The higher cost of Thermal Coal, a key feedstock, drove up production rates and subsequently pushed Ammonium Sulphate prices higher. Robust demand was observed from international markets, especially India and Brazil. However, in August, prices declined due to lower-than-expected demand from international markets, particularly India, which was impacted by inadequate monsoon patterns. Toward the end of the month, there was a resurgence in inquiries from both international and domestic markets. Additionally, the low cost of essential feedstock, Sulphuric Acid, exerted downward pressure on Ammonium Sulphate prices. In September 2023, China experienced a shortage of spot availability in the Ammonium Sulphate market as producers prioritized fulfilling supply contracts. Some regions in China faced lower-than-expected supply due to reduced production activity of compound fertilizer plants in the Shandong region. These factors widened the gap between demand and supply, driving the current price hike. Additionally, data from the National Bureau of Labor and Statistics indicated a stable new order and a sharp increase in the Production Price Index, reflecting increased consumption of goods. Consequently, in September, the FOB price of Ammonium Sulphate was assessed at USD 146/MT at Qingdao port.
Europe
The European Ammonium Sulphate market displayed mixed sentiments. In July 2023, Ammonium Sulphate prices in the German market declined due to several factors. These included the pressure of low-cost feedstock Ammonia and reduced demand from the domestic fertilizer sector. Further, this month, energy prices hit a low point for the year in the European region. However, as the winter season approached, both domestic and international buyers geared up to procure fertilizers, leading to a marginal price increase in August 2023, reaching USD 395/MT FOB Hamburg. Nonetheless, the Economic slowdown contributed to a decline in prices in September 2023. Initially, there was moderate demand from the domestic fertilizer market as consumers stocked up for the Barley and Rye planting season in October. However, demand slowed as the month progressed, reflecting the prevailing economic conditions. Reports from market participants indicated that, in the past few weeks, the new orders index remained in a contractionary phase, influenced by weak economic growth and an emerging recession. Reduced exports to the international market resulted in an accumulation of Ammonium Sulphate inventories within the country, further supporting the declining trend.
For the Quarter Ending June 2023
North America
The prices of Ammonium Sulphate have showcased a downward trend in the second quarter ending June 2023. Natural Gas and Ammonia, which are important inputs in the production of Ammonium Sulphate, were both declining during this quarter which may be attributed as a reason behind the decline of Ammonium Sulphate prices. Further exports to other importing American countries like Canada due to the low water level in the Mississippi River have led to surplus availability of the material in the market during June. However, a shortfall in supply was recorded in May, with led to a marginal rise in prices during that period in the country. Overall, the market situation for Ammonium Sulphate remained bearish during this quarter, with low buying enthusiasm from the end-user market. As per the US Bureau of Labor and Statistics, the Natural Gas Index decreased by 2.6% in the month. This was the fourth consecutive in that index. However, as indicated by the Federal Reserve of Economic Data, the Consumer Price Index of the USA has shown a marginal rise from 302.91 in April 2023 to 303.29 in May 2023.
APAC
Considering the current prevailing market dynamics, the prices of Ammonium Sulphate declined throughout the second quarter. The prices have shown a dip of 5.3% from April 2023 to June 2023 in China and a dip of 5.6% from April 2023 to June 2023 in South Korea. The decline in prices was mainly attributed to a decline in feedstock prices and low procurement orders from domestic and international markets. Further, it was observed that China reduced its exports by 0.4% at the end of May, which led to surplus material availability in the market. Depreciating demand from the end–user market, coupled with ample availability of the material, paved the way for a narrow demand-supply gap. Additionally, as indicated by the National Bureau of Statistics China, the Purchasing Manager Index is declining and has been recorded at 48.8 in May 2023 after a marginal decline of 0.8% from the previous month, and the industrial growth rate declined from 5.6 in April 2023 to 3.5 in May 2023.
Europe
As per ChemAnalyst, the prices of Ammonium Sulphate have been declining in Germany throughout the second quarter of 2023 on the back of declining feedstock Ammonia and Natural Gas prices. Procurement orders from domestic soil fertilizer and other importing European countries have also been low during this period leading to stockpiled inventories and consequently impacting the price. Heavy rainfall and bad climate conditions in the Netherlands and the United Kingdom led to delayed farming season and fewer imports from Germany. Weak economic conditions, growing inflation, and the ongoing war situation in the region have also supported the price trend. However, inflation in Germany has sloped down from 6.1% in May to 5.5% in June but is still high than the average level. The German Federal Statistical Office indicated that the Consumer Price Index declined by 0.1% in May 2023. However, the Central Bank of Europe has raised interest rates in the region to control inflation further, which may lead to a potential shift towards an increase in prices in the coming months.
For the Quarter Ending March 2023
North America
In Q1 2023, the Ammonium Sulphate market fundamentals remain bearish under the influence of lackluster demand and a bearish demand outlook. There was a sufficient supply of Ammonium Sulphate in the region to meet the requirements of end users. Compared with the local market, less trade was observed this quarter as a result of low buying ideas against low offer levels. As a result of cautious trading and uncertain market conditions, March-loading cargo is being offered at lower prices to attract buying interest from the suppliers. The slow purchases and declining demand for new stock also led regional producers to revise their Ammonium Sulphate prices. The demand for Ammonium Sulphate from downstream fertilizer and pharma also ended up on a weaker note in the wake of adequate product supply.
Asia Pacific
This quarter, the Ammonium Sulphate market remains affected by limited purchasing activities with the disruption in supply/demand equilibrium compared with the previous quarter. The bidding price of Ammonium Sulphate slumped in the region due to sufficient product availability. Shipments from China to the Southeast Asian region traded lower with no firmer bids and weak market fundamentals. As a result of stockpiling, suppliers remain unwilling to increase prices due to the low volume of transactions in the regional market. In terms of demand, the consumption of Ammonium Sulphate from the downstream fertilizers and pharma sector remains feeble with cautiously operating manufacturing units. This month, the Ammonium Sulphate market was running weakly, with weak cost support.
Europe
The European region has sufficient supplies of Ammonium Sulphate, and suppliers are purchased on a need-to basis. By negotiating the prices and providing discounts, producers attempted to clear their existing stocks. The demand for Ammonium Sulphate from the downstream textile and pharma industry remains feeble, with limited bids and offers. A combination of recession fears and an uncertain economy declined the market. In Germany, the price of Ammonium Sulphate during March 2023 declined to USD 466/ton FOB Hamburg. Ammonium Sulphate demand softened amid economic concerns and high energy costs that forced producers to cutbacks. Suppliers and traders remain skeptical about increasing the prices due to feeble product requirements, and retailers complain about limited buyer interest.
For the Quarter Ending December 2022
North America
The sluggish demand from the downstream agricultural sector has subdued the market sentiments for Ammonium Sulphate in India. In October, the prices of Ammonium Sulphate have plunged by approximately 1.5% from September month's prices. The values of Ammonium Sulphate in the domestic US market have been under pressure due to a sufficient supply of downstream fertilizers and falling upstream Ammonia and Sulphuric Acid costs. The declining Ammonia and Sulphur acid prices and uncertainties in the terminal market have led to a fall in the benchmark prices of Ammonium Sulphate. The stockpiling of downstream fertilizers has tumbled the market demand and pressured the stockholder's quotations of Ammonium Sulphate to dip down.
APAC
The Ammonium sulphate market in the Apac region soared earlier than declined in the second half of the Q4. Manufacturers were less willing to produce in the face of increased demand uncertainty. Regarding agricultural Ammonium Sulphate demand, moderate storage orders and stock replenishment have supported the market, although the support is only temporary. Furthermore, in India, the market participants have stocked up their fertilizers inventories to avoid any imbalance for the upcoming planting season, Kharif. Also, the sanctions imposed by European Nations and the US on Russia have aided India, securing substantial supplies of fertilizers from Russia at deflated price.
Europe
In the recent quarter, Ammonium Sulphate prices declined in Europe as some sellers reduced the product's costs to lower levels, where buyers were willing to re-participate. However, High European natural gas prices continued to drive expectations of solid demand in the fourth quarter of 2022 as regional participants sought to replace local production with imports. On the demand side, the fears of recessions continued to weigh down on regional demand. The downstream industry's demand for Ammonium Sulphate has decreased. On the one hand, the compound fertilizer industry's operating rate fell by 5.8% to an absolute low and the autumn fertilizer season concluded. The price of Ammonium Sulphate in Europe remains under pressure.
For the Quarter Ending September 2022
North America
Ammonium Sulphate prices increased sharply during Q3 of 2022, attaining a price of USD 463/MT FOB Midwest. Transportation was restricted due to the lockdown's extension in major exporting countries like China, which led to slow trading activity both locally and internationally. Ammonium Sulphate prices increased in the US due to port congestion and the growing COVID problem in China's export market. Ammonium Sulphate prices increased due to strong market sentiment and rising demand from downstream fertilizers. Ammonium Sulphate demand in the United States has increased instead of market competitiveness as Brazilian traders were already stocking up on Chinese supplies.
APAC
During Q3, Ammonium Sulphate prices fell in the APAC region. The fall in raw material cost support and the subdued demand from the downstream fertilizer sector has had a negative impact on the Indian Ammonium Sulphate market. Additionally, spot transactions remain below average due to the decline in buying and selling activity on both domestic and international markets. Additionally, worries about global inflation drove up the cost of Ammonium Sulphate and caused a number of issues across the value chain. Due to falling feedstock prices, the price of Ammonium Sulphate continued to decline in the Chinese market. Due to Indonesia's market's fragile economy, downstream demand remained low, just like upstream demand.
Europe
Ammonium Sulphate Prices increased in Q3 due to rising feedstock Ammonia costs. Germany saw a sharp increase in inflation in July 2022. The supply remained moderate to low, and the market situation remained unbalanced. Despite the continued rise in energy prices, operating rates for domestic production were kept in check. Because of labor unrest and congestion in several German ports, access to goods from Asia and the US was hampered. Supply levels were inadequate due to falling inventory levels. The downstream fertilizer industry remained under pressure as the production of all sectors fell short of expectations. As they believed that the winter supply would be limited, downstream consumers started stockpiling fertilizers before the winter season's demand.
For the Quarter Ending June 2022
North America
In Q2, 2022, Ammonium Sulphate prices dipped in accordance with the falling feedstock Ammonia prices. Ammonium Sulphate prices fell on the back of mounting inventories and sluggish demand in the U.S. market during the last week. Weakened demand from downstream Industries has dragged the prices on a downward note. Meanwhile, manufacturers' quotations have declined, indicating a negative market sentiment. Furthermore, the total U.S. natural gas consumption fell by 3.2% compared with the mid-week values in April as colder-than-normal temperatures across the Midwest and Northeast moderated. Thus, the FOB prices declined roughly 1.3% and settled at USD 375/M.T. at New York port in April.
APAC
Ammonium Sulphate costs have surged considerably in the Indian market in Q2 2022 due to high demand. The margins have been impacted by the sharp increase in major raw material prices, including ammonia and Sulphuric Acid. Consistent rise in the prices for Ammonium Sulphates observed in the Indian market. The upstream ammonia is also keeping the trend intact. High demand for Ammonium Sulphate and short supply has forced the manufacturers to raise their offers. Meanwhile, an intensive blast at Deepak Nitrile at the Vadodara capacity is expected to raise the offers soon. Demand from downstream industries is also keeping the price trend upwards.
Europe
During Q2, the European market saw steady demand for Ammonium Sulphate, particularly from the agricultural sector, although production was nevertheless constrained by a lack of feedstock in the area. Due to route congestion and container shortages along important trade routes, exports from other continents, particularly Asia, were greater than expected. Ammonium sulfate costs increased as a result of these factors in the area. Since the beginning of the year, domestic demand for ammonium sulphate has improved the outlook for primary raw materials. The dynamics of ammonium sulphate are aided by rising demand from downstream sectors like construction and agriculture. Geopolitical tensions between Eastern European states and European nations' reliance on Russia for raw material exports have impeded the supply chain internationally.
For the Quarter Ending March 2022
North America
Prices for Ammonium Sulphate witnessed steady growth during the first quarter of 2022, owing to rising gas prices, high demand from the United States, supply issues, and market disruptions in the United States. The downstream agriculture sector is concerned about lack of fertilizer supplies since total inventory levels in all major sectors are below historic levels, while consumption has remained robust. Farmers and other downstream end users were apprehensive about the country's fertilizer costs ahead of the upcoming spring season. Due to high upstream values such as Natural Gas and Coal, prices in the global market have been growing for an extended period. The rebound in AS (Ammonium Sulphate) prices has been matched by Ammonia and Sulphur prices, raising the cost of the product range and benefiting companies that generate Ammonia on-site. Ammonium Sulphate was evaluated at USD 340/MT FOB Corn Belt pricing in the United States in the first quarter ending March 2022.
Europe
Global demand for Ammonium Sulphate has been rising since the beginning of the year, owing to improved market sentiments for primary raw materials. The dynamics of Ammonium Sulphate are supported by increased demand from downstream industries such as agriculture and building. The supply chain has been hampered globally by geopolitical tensions between Eastern European countries and European nations' reliance on Russia for raw material exports. The return of COVID-19 and the severe steps Chinese and Korean authorities adopted to combat its spread disrupted logistics across Europe. Ammonium Sulphate was estimated at USD 337/MT CFR Hamburg in the first quarter ending March 2022.
APAC
The price of Ammonium Sulphate is on the rise, owing to high raw material Ammonia and low Sulphur stockpiles. Fertilizer prices in China have been steadily growing for some time, owing to increased demand from other nations as well as higher freight costs. Firms were required to cease or reduce production as Beijing imposed stringent pollution rules in the run-up to the Winter Olympics in February 2022. China, a major exporter of urea, sulphate, and phosphate, has reduced fertilizer shipments to preserve local supplies since late last year, exacerbating a global price shock and risking escalating inflation. The price of energy sources such as coal and natural gas has grown worldwide due to shortages and winter heating needs, which has impacted the price of Ammonium Sulphate. Prices for Ammonium Sulphate increased during the quarter, settling at USD 318/MT FOB Qingdao.
For the Quarter Ending December 2021
North America
Because of a considerable increase in the value of the product as a result of a global nitrogen fertiliser scarcity, the price of ammonia in the fourth quarter of 2021 in the North American area soared dramatically. Ammonia supplies were slow in the third quarter as a result of the impaired availability of upstream nitrogen and sulphur as a result of Hurricane Ida. The market sentiments for Sulphuric Acid declined during the fourth quarter of 2021, following a consistent ascent the previous quarter. Furthermore, the average producer's price index for Sulphuric Acid in the United States was 206.10 points in the third quarter
APAC
During the fourth quarter, prices for Ammonium Sulphate rose sharply, reaching INR 25450/MT CFR Kandla. The current Ammonium Sulphate market is being pushed by rising demand for fertilisers from the agriculture sector during the rabi crop season, as well as the fact that it is a key component in the production of several vaccines in the pharmaceutical industry. The rise in fertiliser prices has coincided with the rise in coal prices, pushing China to impose export restrictions. China is a major supplier of sulphate. South Korea's logistics industry is facing the brunt of China's export limitations, which have pushed up the price of Ammonium Sulphate in the regional market as well.
Europe
Market sentiments for Ammonium Sulphate in the European region remained soaring upwards in the fourth quarter of 2021. A supply constraint in Russia has pushed up domestic usage of the country's own natural gas, driving up costs. Lack of supply from the United States owing to Hurricane Ida-related interruptions, as well as a heat wave in the United Kingdom and other European countries that has affected wind generation, have all contributed to higher natural gas prices.
For the Quarter Ending September 2021
North America
The price curve of Ammonium Sulphate in North America experienced an upward trajectory during the third quarter. Since the beginning of Q1 in 2021, the demand for key fertilizers was strong in the USA, firstly due to spring sowing which began later than usual because of extreme weather conditions that disrupted the normal sowing of crops. Secondly, disruptions in the supply were encountered as imports of fertilizers were hampered due to extreme weather and production shortages around the world. Consumption was strong primarily by the agricultural and industrial sector, which resulted in strong demand for Ammonium Sulphate in the region. The North American fertilizer index showed staggering growth which led to high cost of Ammonium Sulphate for farmers. Increasing feedstock prices have been also at the forefront in driving the prices for fertilizers upwards in Q3.
Asia
During the third quarter of 2021, Ammonium Sulphate prices witnessed a considerable surge in the Asia Pacific region. In China, the supply of Ammonia continued to stay firm which resulted in soaring prices of Ammonium Sulphate across the region. Skyrocketing energy prices affected fertilizer production during September which aggravated fears among farmers regarding stocking activities. In India, the market trended up and Ex-Mumbai prices escalated from USD 319/MT to USD 384/MT during the third quarter. The demand for fertilizers remained firm in the domestic market amidst the arrival of the monsoon. Besides, high premium on Ammonia due to global shortage also aided the Ammonium Sulphate market. Owing to the high production cost, several manufacturers were compelled to transfer the cost increases consumers which resulted in the increment in the prices.
Europe
Prices of Ammonium Sulphate in the European market increased during the third quarter, as the demand for fertilizers from the domestic and international market surged in Q3 2021. The rise in demand for Ammonium Sulphate for downstream applications resulted in an uptrend in the European region. Consistent increase in the prices of raw materials globally further escalated the prices of upstream Ammonium Sulphate across the region.
For the Quarter Ending June 2021
North America
Demand for Ammonium Sulphate linearly improved within the quarter, as farming activities remained dull initially, which later improved with improvement in weather conditions. Post the effect of freezing fallout across Texas, USA experienced snowy and rainy weather at several parts of the country, which reduced the farming activities and ultimately decreased the demand for agricultural products in the country. However, later in May and June, prices of Ammonium Sulphate improved effectively following shortage in USA. In addition, subdued domestic production and supply commitment to other countries from major manufacturers, contributed to a steep rise in prices of Ammonium Sulphate in the country. Therefore, post the effective rise, prices of Ammonium Sulphate settled at USD 372/MT for FOB Texas during the month of June.
Asia
Ammonium Sulphate prices experienced a steep rise in APAC region during Q2 2021. In China, the demand initially remained muted from major importing countries, which later improved effectively from the domestic as well as from international market with improvement in economic and farming activities in major importing countries. Chinese traders revealed that they were uncertain about the demand from Indian market during this time frame, while several European countries restrained to buy Ammonium Nitrate from China due to skyrocketing prices. On the other hand, overall demand in the Indian market remained firm, where major fertilizer manufacturers like FACT gained fine profit in despite of COVID pandemic in the country. Therefore, market achieved firm growth during this quarter and prices settled at USD 221/MT and USD 294.3/MT during June 2021.
Europe
Prices of Ammonium Sulphate in the European market remained firm during this quarter, as the demand from domestic and international market was deemed sturdy. Rise in demand in USA amidst curtailed domestic production, increased the pressure on major European manufacturers to satisfy the overall requirements. Russian manufacturers were heard running their plants on high capacity to satisfy the overall domestic and international demand. In addition, consistent rise in raw material prices also impacted the prices of upstream Ammonium Sulphate across the region.
For the Quarter Ending March 2021
North America
Ammonium Sulphate production facilities were affected by extreme cold weather during Q1 2021. Several major manufacturing units were down during this period and led to material shortage across the region, plants like PCL nitrogen and Nutrien’s Borger plant remained idle during this time period. Although the domestic demand from the agriculture sector remained low as there was extreme cold condition and most of the land were covered with the snow. Despite of this, low demand from the domestic market, firm demand from other countries and shortage supported the FOB prices to rise by 6.9% and settle around USD 310/MT in March at Texas.
Asia
The Asian market witnessed lower demand for Ammonium Sulphate from the agricultural sector but received strong export demand from the US and Europe. Low inventory levels of Chinese manufacturers after lunar holidays, pressured the average prices to rise by 10.4% and reach USD 163.6/MT in the country. Similarly, in the Indian market most of the demand was coming from US and Europe, meanwhile congestion across the trading route halted trading activity between Asia and Europe, which led to a slight rise in prices of Ammonium Sulphate in the Indian market.
Europe
The European market witnesses a stable demand for Ammonium Sulphate during Q1 especially from the agriculture sector, although the production remained affected due to shortage of feedstock across the region. Exports from other continents especially from Asia were higher than anticipated amid route congestion and container shortages across prime trading routes. These conditions led to rise in the prices of Ammonium Sulphate across the region.
For the Quarter Ending September 2020
North America
Majority of Ammonium Sulphate produced in North America produces Caprolactam as a by-product. Local producers, due to oversupply situation of Caprolactam in the nylon markets are focusing on domestic Ammonium Sulphate market. However, production issues due to Hurricane Laura at the primary product caprolactam pushed up the pricing curve for the by-product AS during mid-August. As per our market sources, it is estimated that farmers in North America can potentially increase 1 million tonne demand for Ammonium Sulphate next year, thereby creating a huge opportunity for the regional Ammonium Sulphate market.
Asia
A rebound in Caprolactam price in northeast Asia eased the prices for Ammonium Sulphate in the region during the third quarter. Pent-up demand from the downstream fertilizer industry during the pandemic led to a substantial increase in the spot buyers. Encouraged by environment regulation policies, there was an upside potential in the demand of Ammonium Sulphate from those engaged in powerplant desulphurization. However, imposed travel restrictions kept the export volumes exceptionally low. The quarter ended with as new capacities of byproduct Caprolactam announced in Indonesia and Malaysia further create an oversupply situation. Price of Ammonium Sulphate was assessed around USD 123 per tonne CFR Southeast Asia in mid-September.
Europe
The restart of export-oriented plants in Russia and Ukraine saw a burst of sales activity in the Black Sea for late October and early November loadings. Spot supply from Russia and Ukraine was booked for the steady flow of cargoes for the rest of the year given that the region’s plant turnaround season is over. Spain and Turkey are booked to receive their usual contract volumes from various suppliers, while other countries also securing supply on spot basis for prompt arrival. However, as the governments and companies expected to get to grips with the second wave of the coronavirus, the demand of Ammonium Sulphate from the fertilizer manufacturers is expected to increase in Q4.
