For the Quarter Ending March 2025
North America
In Q1 2025, the Ammonium Chloride prices in the USA saw a steady upward trend, driven by tight supply and strong seasonal demand. Despite volatility in Ammonia feedstock costs, prices stayed elevated due to production cuts from extreme winter weather. Force majeure declarations by key producers like OCI Beaumont LLC and CF Industries, along with freight disruptions, limited domestic availability. Agricultural demand also picked up as farmers stockpiled ahead of spring planting, especially for crops such as rice and sorghum.
However, irregular weather patterns, including drought concerns and planting delays, led to cautious buying later in the quarter. On the global front, reduced output from Europe and China, coupled with speculation over potential fertilizer tariffs, added to the market’s uncertainty.
This combination of factors—weather-related supply constraints, logistical hurdles, and shifting agricultural sentiment—shaped a price environment marked by upward pressure and cautious optimism throughout the quarter. The overall market reflected a delicate balance between demand recovery and supply limitations.
APAC
The Asian Ammonium Chloride market witnessed notable volatility during the first quarter of 2025, marked by an initial price decline followed by a recovery and sustained upward trend in subsequent months. At the beginning of the quarter, market prices declined primarily due to improved supply dynamics. Several domestic producers across the region, particularly in China, resumed operations after scheduled maintenance shutdowns, which led to a gradual recovery in production capacities and higher operating rates. As a result, the overall availability of Ammonium Chloride in the market increased substantially. However, this surge in supply coincided with subdued demand from key downstream sectors, especially the fertilizer and chemical industries. The mismatch between rising supply and lagging demand led to inventory accumulation and exerted downward pressure on prices. Towards the latter part of the quarter, market sentiment shifted positively as domestic restocking activity gained momentum. Increased procurement ahead of the spring agricultural season, particularly in China, supported the recovery in demand and contributed to the rebound and stabilization of prices across the region.
Europe
The European Ammonium Chloride market exhibited a mixed pricing trend during the first quarter of 2025, shaped by varying supply-demand dynamics and cost pressures. Prices declined in January, primarily due to weak consumer demand across the region. End-users in the fertilizer and chemical sectors were hesitant to procure large volumes, leading to limited market activity and downward pressure on prices. However, as the quarter progressed, the market witnessed a gradual recovery. By February and March, demand picked up noticeably, supported by restocking efforts in preparation for the spring planting season. This seasonal uptick in agricultural activity significantly boosted domestic consumption. Concurrently, on the supply side, the cost of production rose due to a shortage and elevated prices of feedstock Ammonia, thereby exerting upward pressure on Ammonium Chloride prices. The combination of rising input costs and improving demand fundamentals supported a sustained price increase during the latter part of the quarter. Additionally, growing international demand—particularly from Latin American countries—further strengthened the European market, contributing to the observed price rally.
For the Quarter Ending December 2024
North America
The North American Ammonium Chloride market demonstrated notable price trends during Q4 2024, reflecting stability in October and November before experiencing a marginal surge in December. The price remained stagnant initially, despite fluctuating feedstock costs for Ammonia and Natural Gas. Subdued seasonal demand from the fertilizer sector contributed to the lack of price movement, with agricultural activities declining as the planting season faded.
However, demand for industrial applications, particularly in mining and explosives, remained steady, supporting market resilience. On the supply side, logistical challenges such as adverse weather, hurricanes, and low Mississippi River water levels constrained production and imports. Persistent bottlenecks, including a labor strike in Canada, further limited supply availability, though effective inventory management mitigated severe shortages.
By December, slight supply tightness coupled with a modest rise in feedstock prices led to a gradual price increase for Ammonium Chloride. Despite consistent industrial demand, purchasing activity for fertilizers remained cautious, with buyers delaying significant commitments in anticipation of more favorable pricing during winter fill and spring prepay periods. Overall, Q4 showcased a balanced interplay of demand and supply, with steady industrial consumption offsetting seasonal agricultural weakness and supply chain constraints.
Asia- Pacific
The Asia-Pacific Ammonium Chloride market showed mixed trends during the review period, shaped by regional supply-demand dynamics, logistical hurdles, and external influences. In Indonesia and China, prices declined despite rising feedstock costs, as stable domestic production and ample inventories ensured market balance. Subdued export demand from key markets, including the Philippines and New Zealand, impacted by adverse weather disrupting agricultural activities, further pressured prices. Further, Logistical challenges in China, including port congestion at Shanghai and Ningbo, alongside heavy rainfall, caused delays in imports and strained regional supply chains. Vessel bunching and extended waiting times exacerbated supply tightness, influencing market dynamics. Excessive rainfall in southern Asia-Pacific raised concerns over crop damage, particularly for sugarcane, oil palm, and fruit crops, while central regions remained stable for paddy irrigation. Manufacturers across the region maintained consistent production rates, effectively managing rising feedstock costs. However, in the Indian market a slight uptick in price was observed owing to restocking of fertilizer supplies amidst the forthcoming Rabi planting season.
Europe
European Ammonium Chloride prices have declined recently due to subdued demand from key sectors like agriculture, compounded by oversupply conditions and logistical challenges. Despite rising Ammonia feedstock costs and supply disruptions such as the shutdown of a Norwegian gas platform, production has been curtailed, but ample inventories continue to exert downward price pressure. In the UK, a significant price surge occurred in December 2024, driven by supply chain disruptions and delays in exports from key European suppliers, while buyer interest remained inconsistent due to fluctuating weather conditions. Demand in both Europe and the UK has been weak, with cautious purchasing behavior from the agricultural sector, exacerbated by uncertainties around the upcoming winter planting season and ongoing logistical issues, such as port congestion. These dynamics highlight a market under strain, where supply outpaces demand, and economic factors, including high input costs and weather unpredictability, shape future price trends.
For the Quarter Ending September 2024
North America
The North American Ammonium Chloride market exhibited fluctuating price trends throughout Q3 2024, though it predominantly remained on the lower end. In the early part of the quarter, prices saw a significant decline, primarily driven by subdued demand from the key downstream fertilizer sector
Despite attempts by traders to stimulate prices in anticipation of heightened demand ahead of the upcoming planting season, these efforts did not fully materialize. The region was severely impacted by adverse weather conditions, including hurricanes, heavy rainfall, and storms, which disrupted agricultural cycles and restrained demand for Ammonium Chloride fertilizers. Although prices experienced a modest recovery in August 2024, this was largely attributed to supply shortages rather than a resurgence in demand. The hurricanes caused significant production disruptions, limiting the availability of Ammonium Chloride in the market. This supply-side constraint provided some upward pressure on prices.
However, by the latter part of the quarter, prices began to stabilize as the market adjusted to the production setbacks, and demand remained relatively weak in the face of ongoing weather-related challenges.
APAC
In the third quarter of 2024, the Asia-Pacific (APAC) region experienced a significant increase in Ammonium Chloride prices, particularly in Japan, which observed the most pronounced price fluctuations. Several critical factors contributed to this upward trend in market prices. Rising feedstock costs, coupled with supply chain disruptions, played a pivotal role in driving prices higher. Additionally, adverse weather conditions further complicated the market dynamics. Both Japan and China faced particularly volatile conditions, characterized by a surge in demand from the domestic fertilizer sector amid disrupted supply chains. The region was significantly impacted by typhoons, which struck various provinces in China and Japan, bringing torrential rains and strong winds. These extreme weather events resulted in widespread destruction, leading to extensive power outages and substantial disruptions to daily life. The adverse conditions strained transportation infrastructure and power supplies, complicating production processes for key industrial sectors, including Ammonium Chloride manufacturing. Despite these challenges, the quarter concluded with Ammonium Chloride prices reaching USD 102 per metric ton, CFR Tokyo. Ongoing disruptions, such as port congestion and trade uncertainties, have further complicated the pricing landscape, creating additional challenges for stakeholders within the industry.
Europe
During Q3, the European Ammonium Chloride market experienced a significant surge, particularly in Russia, the Netherlands, and the United Kingdom. This increase in prices was mainly attributed to a shortage of raw materials in the European market. The shortage stemmed from Ukraine’s incursion into Russia’s Kursk region, where the critical Sudzha gas transit station is located. Disruption at this key transit point created a ripple effect, impacting European gas supplies and further intensifying the regional shortage of upstream Natural Gas and feedstock Ammonia. The severe scarcity of this essential raw material directly affected Ammonium Chloride production, resulting in reduced output levels and contributing to the rise in Ammonium Chloride prices. Demand for Ammonium Chloride remained moderate, driven by domestic requirements and orders from European importers. However, this demand was largely concentrated among smaller buyers within the region, reflecting a cautious market outlook. Additionally, the market faced further challenges due to fluctuating weather conditions, which impacted demand from the major downstream fertilizer sector. These unpredictable weather patterns made it difficult for farmers to forecast their fertilizer needs, creating a more volatile demand environment.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Ammonium Chloride market witnessed a notable decline in prices, driven by a combination of significant factors. A key element influencing this downward trend was the subdued demand from major downstream fertilizer markets. This reduction in demand was primarily attributable to climate-related challenges and extreme weather conditions, which disrupted regular planting activities and reduced agricultural productivity. The decline in international inquiries, especially from major importers, further exacerbated the market downturn.
Concurrently, the price of a critical feedstock, Ammonia, decreased during this period. This decline led to reduced production rates for Ammonium Chloride, adding additional downward pressure on prices. The overall trend in the market remained negative, with seasonal factors playing a substantial role in dampening demand. Compounding the situation were geomagnetic storms and weather anomalies, which led to planting suspensions and further disrupted agricultural activities.
This, combined with an ample supply of Ammonium Chloride and cautious purchasing behaviour by buyers, narrowed the demand-supply gap. As a result, these dynamics collectively reinforced the downward pressure on Ammonium Chloride prices throughout the quarter.
APAC
During the first month of Q2 2024, the Asian Ammonium Chloride market experienced a notable price dip. This initial decrease in prices led to a reduction in demand for fertilizers, including Ammonium Chloride, across the region. However, this downward trend was short-lived, as prices surged significantly in the subsequent months of the quarter. Several factors contributed to this price increase. Logistical challenges, notably severe port congestion and a shortage of container ships, caused substantial delays in shipments from key exporting countries. These issues created a tightening of supply, further straining the availability of Ammonium Chloride. Concurrently, adverse weather conditions adversely affected agricultural productivity, prompting farmers to increase their fertilizer investments to mitigate the impact of poor weather on crop yields. The combination of these logistical disruptions and heightened agricultural demand created a conducive environment for price inflation. By the end of the quarter, the market price for Ammonium Chloride had risen to USD 103 per metric ton CFR Tokyo, reflecting the persistent upward momentum and highlighting the market's adjustment to the supply-demand dynamics.
Europe
During Q2 2024, the European Ammonium Chloride market experienced a marked downturn in prices, reflecting a broader trend of decreasing valuations across the region. Unfavourable weather conditions, including harsh windstorms and floods, significantly dampened agricultural demand, particularly in the fertilizer sector. This decline in demand was compounded by an oversupply of Ammonium Chloride, driven by ample inventories and smooth cargo inflows despite ongoing geopolitical uncertainties. Market participants reported a notable decline in fertilizer sales across Europe, a major factor driving this stagnancy. The adverse weather conditions disrupted agricultural activities, further reducing the need for fertilizers. Consequently, the Ammonium Chloride market faced substantial challenges, resulting in decreased prices and an overall bearish market sentiment throughout the quarter. Additionally, the ongoing geopolitical uncertainties contributed to market instability, as concerns about supply chain disruptions and potential trade barriers remained prevalent. Despite these uncertainties, cargo inflows remained smooth, exacerbating the oversupply situation. The industrial sector, which is a significant consumer of Ammonium Chloride for various applications, also showed reduced activity. This reduction in industrial demand, along with the subdued agricultural sector, led to a decreased overall uptake from downstream sectors.
