How Imports Have an Impact on the Price of Ammonium Sulphate in the US Market

Due to strong fundamentals in both demand and supply, Ammonium Sulphate prices have remained stable in the United States. The primary reason for the supply gap has been the inability of import volumes to meet demand overall. Domestic production has also fallen short because it hasn't recovered from the production restraints that were implemented in Q1, and imports from European nations haven't been able to make up the difference. Only European granular Ammonium Sulphate is imported by the US, and European producers are unable to supply the necessary quantities because of agreements with South American nations. As a result, the price of ammonium sulphate was last averaged at USD 435/MT in Midwest on a FOB basis.

As per ChemAnalyst database, In May 2022, the cost was USD435/MT. The price was USD 370/MT at the start of the year, and it increased to USD 450/MT during June. This has dealt a devastating blow to farmers who are already grappling with difficulties like as climate change, labour shortages, and increases in fertiliser and insecticide prices. Farmers who use mixed fertiliser would suffer as a result of the price increase.

Whereas in 2021, the average Ammonium Sulphate import price was $222 per tonne, essentially unchanged from the previous year. The major supplier countries' average pricing differed slightly. Canada ($253 per tonne) and Germany ($216 per tonne) had the highest costs in 2020, while Belgium ($170 per tonne) and Russia ($170 per tonne) had some of the lowest prices. Canada had the highest rate of price growth in 2020, while the prices of the other major suppliers decreased.

However, with upstream values fluctuating and staying at a volatile level, we can expect Ammonium Sulphate prices to surge in the American states in the further weeks. As per speculations and calculations made by ChemAnalyst, the prices of Ammonium Sulphate in FOB Midwest are expected to surge by 2.9% in the month of July.