For the Quarter Ending September 2021
In Q3 of 2021, the US Ammonium Nitrate market remained buoyant with surging demand from the downstream agriculture sector. As the economic recovery had been steadily progressing towards pre-pandemic levels, prices of Ammonium Nitrite witnessed an uptrend. Supplies remained tight throughout the quarter owing to the rising costs of upstream Ammonia as an impact of Ida hurricane that made landfall in the Gulf Coast of USA in August end. As the US market is looming large following the energy crisis due, Ammonium Nitrite prices are expected to continue tracing the trend going into Q4.
In Asia, Ammonium Nitrate market witnessed an upward rally followed by the steep rise in the prices of upstream Ammonia and sturdy offtakes from the downstream segments during Q3 of 2021. In India, an exponential rise in the prices of Ammonium Nitrate was witnessed throughout the quarter on the back of the steep rise in raw material cost amid high demand from the domestic market. In addition, the inventory level of fertilizers in India was not enough to meet the seasonal demand requirements which consequently pushed up the prices of the product during this timeframe. However, to protect farmers from the price burden, government made efforts to control frequent revisions in prices of Ammonium Nitrate in the region. Besides, restrictions on fertilizers exports by China also concerned traders about the supply. Hence, Ammonium Nitrate Ex-Ahmedabad prices stood at USD 1662.83 per MT in September, showcasing a significant hike since July.
In the European market, prices of Ammonium Nitrate soared as the demand for fertilizers from the domestic and international market surged in Q3 2021. Consistent rise in the values of raw materials in the international market further escalated the prices of Ammonium Nitrite across the region. Moreover, swirling freight charges and rising demand for Ammonium Nitrite for downstream applications resulted in an uptrend in values in the European region.
For the Quarter Ending June 2021
North American market witnessed firm demand for Ammonium Nitrate during this quarter. A major manufacturer of USA revealed about the stable offtakes from the domestic fertilizers market during the month of May, as the climate condition became suitable for farming. In addition, soaring Ammonia prices amid firm demand from different verticals like DAP and Urea also impacted the prices of Ammonium Nitrate during this timeframe. Besides, fluctuating natural gas prices also influenced the prices of different fertilizers including Ammonium Nitrate in USA.
Asian market faced firm sentiments for Ammonium Nitrate during this quarter from the domestic market, backed by significant offtakes from the end use segments. In India, demand for Ammonium Nitrate remained consistently firm throughout the quarter, while prices of feedstock Ammonia rose effectively due to high demand and inadequate availability. While in China, prices remained consistently firm in the domestic market, as the seasonal demand was approaching in the country. However soaring feedstock Ammonia prices also influenced the prices of Ammonium Nitrate in the country during this timeframe.
European market experienced firm demand for Ammonium Nitrate during this quarter. Amidst the firm demand from the downstream sector several other fertilizers also rose effectively. A major producer Yara announced their new seasonal prices for Europe. The company surprisingly offered Ammonium Nitrate on a comparatively lower prices than the ones offered previously.
For the Quarter Ending March 2021
North American market faced acute shortage of Ammonium Nitrate across the region during Q1 2021. After the winter storm Uri stroke US Gulf Coast in February, the availability of feedstock chemicals Ammonia and Nitric Acid reduced affectively due to curtailed production activities. However, the demand for fertilizers remained suspended for more than a month, as snow and frequent rains reduced the farming activities during the time period. This demand effectively improved in March and overall prices of Ammonium Nitrate showcased improvement by more than 20% within the quarter across Nebraska farms.
Asian countries encountered firm demand for Ammonium Nitrate fertilizerfrom domestic agriculture sector during the quarter ending March. With the arrival of crop season Zaid in India, and with uplifted sentiments after sufficiently good crop in the prior quarter, demand for Ammonium Nitrate in the Indian market improved effectively. Indian imports witnessed an increase on y-o-y basis during Q1 2021. Meanwhile in Chinese market similar scenario was observed where the seasonal demand remained consistently firm.
Arrival of Spring season escalated the market sentiments of Europe, where the demand remained substantially high throughout the quarter. However, unfavourable climate condition in some areas halted the agricultural activity for some weeks, which later recovered efficiently. Thus, the prices rose affectively in Europe for almost all the fertilisers including Ammonium Nitrate especially from UAN fertilisers segment, whose demand was observed higher than many other alternatives.