For the Quarter Ending March 2022
Prices for ammonium carbonate grew steadily in the first quarter of 2022due to rising gas costs, increased demand from the United States, and several other factors including supply concerns, and market disruptions in the United States. Because total inventory levels in all key sectors are below record levels, but demand has remained strong, the downstream agriculture sector is concerned about a lack of fertilizer supplies. Ahead of the forthcoming spring season, farmers and other downstream end users were concerned about the country's fertilizer expenses. Prices in the worldwide market have been rising for a long time due to increasing upstream values such as Natural Gas and Coal. Ammonium carbonate del Illinois prices were reported at USD685/MT averaged during Q1 2022.
During Q1 2022, Ammonium Carbonate prices increased owing to stronger demand from downstream segments. Because total inventory levels in all key sectors were far below historic levels, the downstream agricultural manufacturers are concerned about a lack of fertilizer supplies. The price of Ammonium Carbonate increased again this quarter and settled at USD500/MT on an average, continuing the upward trend set by the global rise in Ammonia costs. Upstream nitrogen and coal prices and high natural gas prices pushed Ammonium Carbonate prices higher. Ahead of the next Kharif season in India, downstream end-users, notable farmers, were worried about the country's fertilizer prices. Prices in the global market have been rising for a long time due to increasing upstream values such as Natural Gas and Coal.
During Q1 2022, global demand for Ammonium Carbonate has been growing since the beginning of the year because of improved market sentiments for primary raw materials. Ammonium Carbonate's dynamics are aided by rising demand from downstream sectors such as agriculture and construction. Geopolitical tensions between Eastern European countries and European nations' reliance on Russia for raw material exports have impeded the supply chain, internationally. COVID-19's reappearance, as well as the harsh measures taken by Chinese and Korean authorities to fight its spread, wreaked havoc on European logistics. In the first quarter of 2022, the price of ammonium carbonate was projected to be USD 350/MT CFR Hamburg in Germany.
For the Quarter Ending December 2021
The pricing trend of Ammonium Carbonate accelerated in the fourth quarter of 2021 due to high demand and low supply across North America. Because it is a Natural Gas derivative, the price of its feedstock Ammonia has been steadily rising, putting downward pressure on the price of Ammonium Carbonate and its downstream products. Furthermore, Hurricane Ida in the United States affected not only the operation of various production units, including those producing Ammonia and Ammonium Carbonate, but also the supply chain across the international market at the beginning of October. Furthermore, due to the growth of the ceramics and textile industries, there was a significant increase in demand for Ammonium Carbonate from downstream industries, which aided the rising price trend in North America.
In Q4, the Asian market saw a large increase in Ammonium Carbonate prices, owing to a significant increase in the price of the feedstock Ammonia, which is a Natural Gas derivative. High demand from downstream industries and reduced feedstock availability due to factors such as a halt in numerous factories for maintenance following port congestion in October, as well as a Chinese ban on exports, sent tremors through the Ammonium Carbonate market. Disruptions in the supply chain from China and the Middle East because of covid restrictions and port congestion led to the upward trend in Ammonium Carbonate pricing in Q4.
The exponential spike in Ammonium Carbonate pricing in the European market was caused by strong demand and limited availability of Ammonium Carbonate and its feedstock across the region. In addition, following the maintenance period, Gazprom cut down its natural gas supplies to Europe for about two months. Furthermore, throughout the quarter, demand for Ammonium Carbonate from downstream industries such as textiles, Ceramics and Adhesives remained strong.