In September 2025, Ammonium Polyphosphate (APP) prices in the USA decreased by 3.93% due to excessive inventories and inconsistent demand. Both the flame retardant and paint & coatings market continued to consume at constant rates due to rigorous regulations in the automotive and electronics industries regarding electric vehicles (EV), while the end-of-season slump in agricultural activity led to reduced consumption of fertilizer.
The USA’s APP market in September 2025 experienced stable but uneven demand, with flame retardants and paints & coatings sustaining uptake due to EV battery safety requirements and construction fire-resistance needs, driven by UL 94 compliance. However, the agricultural sector experienced significant declines in demand, as producers reduced inventories of APP following harvest and because milder weather in the fall weakened demand, damaging overall market demand. APP supply was steady, with regular shipments coming in from China and no indications of logistical issues despite continued pressure from high global freight costs. Chinese exports were absorbed carefully, and suppliers held to demand. New products, such as non-halogenated flame retardants for plastics, produced by ICL, and Induron’s single-component intumescent coating, were introduced to recast supply to the new EPA specifications regarding low-VOC and sustainable products. SMX also conducted recycling trials aimed at recovery of flame-retardant plastics to support circular supply chains.
Prices for APP CFR Los Angeles decreased by 3.93% in September 2025, largely due to overstocked inventories and weakened demand in agriculture, even with demand from flame retardants and coatings holding steady. The overall trend was consistent throughout the month with little variation week after week, as balanced supply-demand conditions and notably no changes to input costs limited price movement but overstock limited opportunity for increased prices. Agricultural sector seasonal slowdown APP demand, driven by reduced fertilizer use, determined still more bearishness with overstock feeding through from high Chinese market production. The recent association of recycling with sustainable plastics application was identified, with SMX's recent collaboration with RedWave in sorting for product recovery and eventual repurposing sorting based on molecular markers. Global APP supply chains remained stable without major port breakdowns delivering summary results proportional to prior month, while however high levels of inventory and upward pressure from freight costs continued to limit any price connection. Longer term structural tailwinds from expected growth in EV markets and interest in circular economy also presents upside demand recovery events in the future.
ChemAnalyst expects the APP market in the US to stay weak in October 2025 because seasonal agricultural slowdowns are still expected to hold back imports and exert downward price pressure in the presence of adequate warehouse inventories. Regulatory trends favoring sustainable flame retardants and electronic vehicle safety should facilitate long-term demand, resulting in some demand growth. The cost of importing APP will remain stable given smooth port operations and consistent supply chains from China; however, shippers would want to monitor freight rates and inventory levels closely.
