Ammonium Sulphate’s Upward Trend Intact Across Global Markets
- 03-Jun-2022 6:51 PM
- Journalist: Jacob Kutchner
New Delhi, India: The price trend for ammonium sulphate has been on the higher side since the peak of the demand season in the first quarter. Increases in fertiliser prices are being aided by higher energy prices. The rise in prices is due to several factors, including growing input costs and supply delays caused by sanctions against Belarus and Russia, as well as China's export restrictions. Ammonium Sulphate prices have surpassed the INR 36880/MT Ammonium Sulphate (N-20.6 percent) Ex-Mumbai range. Concerns over fertiliser affordability and availability have grown because of the conflict in Ukraine. The start of the ploughing season in the United States will be delayed due to cold and rainy weather, but this should not impact downstream fertiliser demand for Ammonium Sulphate.
In the past week, the price of ammonium sulphate in Asia has fluctuated in a mid-range and remained relatively stable at a lower level. Prices fell as on-site ammonium sulphate offtakes were smooth and downstream traders bought on a need-to-know basis. The price of CPL grade ammonium sulphate, on the other hand, was high and stable.
Ammonium Sulphate price are on a bullish run taking cues from high raw material Ammonia and tight sulphur inventories. Fertilizer prices in the Chinese market have been rising since a long time mainly due to larger demand from countries as well as higher freight cost. Fertilizer prices are set to report fresh hikes in June under a combined influence of tightening supply chains and boosted input costs. “The fertilizer rates across Asia have touched several months high due to high demand and high feedstock rates. A sharp rise can be seen in feedstock Ammonia rates.”, according to a respondent.
This week, the downstream compound fertiliser market remained solid at a high level. The corporation expected to boost the quotation due to a higher raw material market and expanded upstream, and the market environment was favourable. Previous orders still ruled, but the concentration of transactions had shifted upwards, and there were fewer cheap prices.
As per ChemAnalyst, “The downstream industries including Agrochemicals and Fertilizer sector are expected to maintain strong demand for Ammonium Sulphate and prices are expected to rise in the coming months due to rising material production costs caused by rising upstream natural gas prices and feed Ammonia prices in the Asian and American market.”