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Global Ammonium Sulphate Market Surges Amidst Material Shortage and Firm Export Demand
Global Ammonium Sulphate Market Surges Amidst Material Shortage and Firm Export Demand

Global Ammonium Sulphate Market Surges Amidst Material Shortage and Firm Export Demand

  • 02-Sep-2024 3:08 PM
  • Journalist: Rene Swann

Global Ammonium Sulphate prices kept fluctuating and remained on the upward side throughout August 2024. This price surge of Ammonium Sulphate in the global market can be attributed to a combination of factors including shortage of raw material, firm demand and labour shortage. In Europe, the Ammonium Sulphate market is experiencing severe shortages due to reduced production, labor shortages exacerbated by summer holidays, and a lack of raw materials. These issues were further intensified by trade instability and delays in Ammonium Sulphate exports, leading to higher import costs and disrupted supply chains. Further, in the Asian market prices surged owing to robust export demand with China being the most impacted region.

In August 2024, the Asian Ammonium Sulphate market experienced a noticeable increase in prices on a month-on-month basis, with the Chinese market being a significant contributor to this trend. This upward price trajectory was primarily driven by robust purchasing activity from both domestic and international buyers. Notably, there was a moderate increase in demand for Ammonium Sulphate from Chinese traders who were actively securing Ammonium Sulphate, largely for use as a raw material, particularly in the northern regions of the country.  Market participants highlighted a surge in export inquiries from Turkey, reflecting a strong interest in securing supplies from China amidst global trade dynamics. In contrast, demand from Southeast Asian markets was subdued, as the seasonal buying period had waned, leading many buyers in that region to exit the market temporarily. Additionally, the Chinese domestic market maintained a strong demand profile, with traders in the northern provinces actively procuring Ammonium Sulphate. This sustained demand for Ammonium Sulphate was influenced by the need to secure raw materials for ongoing industrial processes. As a result, by the end of August, there were reports of elevated inventory levels among Chinese traders, who had accumulated substantial stocks after acquiring multiple shipments from suppliers earlier in the month.

In August 2024, the European Ammonium Sulphate market saw a sharp price increase due to supply shortages and logistical challenges. Reduced raw material availability and manufacturing activities, exacerbated by decreased labour during summer holidays, tightened supply of various commodities including Ammonium Sulphate. Persistent port congestion and global trade uncertainties delayed exports and increased import costs, further straining the supply chain of Ammonium Sulphate. These combined factors led to a severe shortage and higher prices for Ammonium Sulphate, amplifying cost pressures throughout the market. Despite this demand for Ammonium Sulphate kept fluctuating and mostly remained on a lower end. Consumers were busy with the ongoing harvesting activities in the region and thus the demand remains consistent with only a fewer bids or enquiries observed.

According to ChemAnalyst, Ammonium Sulphate prices are expected to increase in the coming months due to raw material shortages and a forecasted rebound in demand.

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