Global Ammonium Sulphate Prices Show Rising Trend Amidst Firm Demand
- 04-Oct-2023 2:20 PM
- Journalist: Timothy Greene
Throughout September 2023, the Ammonium Sulphate market witnessed a slight uptick in price globally. This surge in price is attributed to a combination of factors, including increasing feedstock and upstream prices, robust demand for Ammonium Sulphate from the downstream industries, and supply chain disturbances.
During the initial half of September 2023, Ammonium Sulphate prices in the North American region experienced a notable increase. At the onset of the month, there was a high demand for Ammonium Sulphate from the domestic and international fertilizer markets, driven by the impending winter planting season. However, as the month progressed, there was an evident decline in international market inquiries, particularly from Brazil. The reluctance of buyers to engage in bulk purchases exerted downward pressure on import prices, indicating a sustained weakening of the Western market. On the supply side, ample Ammonium Sulphate was available to cater to end-users' requirements. These combined factors led to a balanced equilibrium between supply and demand.
Moreover, the Bureau of Labor Statistics data revealed a significant 19.1% surge in imported natural gas prices in August 2023, with expectations of a continued upward trajectory. This rise in upstream natural gas prices consequently elevated the production cost of Ammonium Sulphate. Additionally, the country's Consumer Price Index (CPI), as reported by the same source, indicated a 0.6% increase in August, with a minor 0.1% uptick noted in the Natural gas index.
Similarly, in the European region, the recent surge in Ammonium Sulphate prices can be attributed to a resurgence in demand from the downstream industry, coupled with an increase in the price of upstream Natural Gas. Towards the end of September, complications arose with Norwegian offshore gas facilities, reducing the supply of Natural Gas to the Gulf Coast. This, in turn, exerted upward pressure on Natural Gas prices. Consequently, European Ammonium Sulphate producers were under greater pressure to procure gas from other countries rather than produce it domestically.
Furthermore, the demand for Ammonium Sulphate from the downstream fertilizer market remained robust as consumers actively stockpiled the product in preparation for the upcoming planting season. This month, Russia also implemented export duties on fertilizers, including Ammonium Sulphate, further supporting the prevailing price trend. However, the supply situation in the European market remained stable, with sufficient stocks available to meet end-users' needs.
As per ChemAnalyst, Ammonium Sulfate prices are anticipated to increase globally in the forthcoming months. The price rise can be attributed to the heightened costs of feedstock Ammonia and upstream Natural gas. Additionally, firm demand from the downstream fertilizer industry is anticipated in the coming months.