The Ammonium Chloride market remained under pressure during April 2025 particularly in the Asian market with India and China being the most impacted region. The price of essential feedstock Ammonia was also declining during the same period of time prompting towards reduced production cost and thus exerting downward pressure on Ammonium Chloride pricing. Further, persistent port uncertainties faded seasonal demand and harsh weather conditions also supported the current market scenario.

In the Chinese market, the prices of Ammonium Chloride slide downwards in April 2025, marking a sharp contrast from the trend observed during the previous month in face of narrowed disparity between demand and supply.  On the domestic front demand has started to ease for Ammonium Chloride as wheat planting has almost passed and thus the demand has begun to confine. Further, on the international front, demand has remained restricted, elevated freight charges and persistent port congestion has compelled the international consumers to source Ammonium Chloride from other regions. Further, adequate availability of feedstock Ammonia and healthy manufacturing activities of operating units emitting Ammonium Chloride has led to adequate availability of the material in the domestic market. To add fuel to this, port congestion remains elevated across the country. Persistent congestion at Northern and Central China port along with severe weather-related work stoppages across key ports continuing to keep the queue of vessels waiting at anchorages high at some of the crucial ports including Shanghai port.

Meanwhile, in the Indian market the prices of Ammonium Chloride continue to move southwards. With the Rabi planting season concluding and weather conditions worsening, summers arriving early and heat waves breaking records, consumers have remained hesitant in making bulk purchases. Although few enquiries were registered but were mostly on a contractual basis for May 2025 and no spot trading was observed. Further, Nutrient-Based Subsidy (NBS) rates for the nitrogen-based fertilizers in Kharif season of 2025, effective from April 1st to September 30 may also led to increased procurement activities of Ammonium Chloride in the Indian market.

As per ChemAnalyst analysis, the market of Ammonium Chloride is expected to make a potential shift in the Northwards direction in the near future. International demand for Ammonium Chloride particularly from importing Asian countries may support the price hikes particularly from Thailand and Malaysia. Currently, Thailand is experiencing adequate rainfall creating favorable conditions for crop cultivation and thus traders are expected to start restocking Ammonium Chloride for the upcoming planting season soon. Further, in the Indian market as the Kharif season is approaching demand may revive. As per the data released agriculture ministry data the total summer crop cultivation area rose 15% year-on-year the same period last year.