For the Quarter Ending June 2023
North America
The prices of Ammonium Sulphate have showcased a downward trend in the second quarter ending June 2023. Natural Gas and Ammonia, which are important inputs in the production of Ammonium Sulphate, were both declining during this quarter which may be attributed as a reason behind the decline of Ammonium Sulphate prices. Further exports to other importing American countries like Canada due to the low water level in the Mississippi River have led to surplus availability of the material in the market during June. However, a shortfall in supply was recorded in May, with led to a marginal rise in prices during that period in the country. Overall, the market situation for Ammonium Sulphate remained bearish during this quarter, with low buying enthusiasm from the end-user market. As per the US Bureau of Labor and Statistics, the Natural Gas Index decreased by 2.6% in the month. This was the fourth consecutive in that index. However, as indicated by the Federal Reserve of Economic Data, the Consumer Price Index of the USA has shown a marginal rise from 302.91 in April 2023 to 303.29 in May 2023.
APAC
Considering the current prevailing market dynamics, the prices of Ammonium Sulphate declined throughout the second quarter. The prices have shown a dip of 5.3% from April 2023 to June 2023 in China and a dip of 5.6% from April 2023 to June 2023 in South Korea. The decline in prices was mainly attributed to a decline in feedstock prices and low procurement orders from domestic and international markets. Further, it was observed that China reduced its exports by 0.4% at the end of May, which led to surplus material availability in the market. Depreciating demand from the end–user market, coupled with ample availability of the material, paved the way for a narrow demand-supply gap. Additionally, as indicated by the National Bureau of Statistics China, the Purchasing Manager Index is declining and has been recorded at 48.8 in May 2023 after a marginal decline of 0.8% from the previous month, and the industrial growth rate declined from 5.6 in April 2023 to 3.5 in May 2023.
Europe
As per ChemAnalyst, the prices of Ammonium Sulphate have been declining in Germany throughout the second quarter of 2023 on the back of declining feedstock Ammonia and Natural Gas prices. Procurement orders from domestic soil fertilizer and other importing European countries have also been low during this period leading to stockpiled inventories and consequently impacting the price. Heavy rainfall and bad climate conditions in the Netherlands and the United Kingdom led to delayed farming season and fewer imports from Germany. Weak economic conditions, growing inflation, and the ongoing war situation in the region have also supported the price trend. However, inflation in Germany has sloped down from 6.1% in May to 5.5% in June but is still high than the average level. The German Federal Statistical Office indicated that the Consumer Price Index declined by 0.1% in May 2023. However, the Central Bank of Europe has raised interest rates in the region to control inflation further, which may lead to a potential shift towards an increase in prices in the coming months.
For the Quarter Ending March 2023
North America
In Q1 2023, the Ammonium Sulphate market fundamentals remain bearish under the influence of lackluster demand and a bearish demand outlook. There was a sufficient supply of Ammonium Sulphate in the region to meet the requirements of end users. Compared with the local market, less trade was observed this quarter as a result of low buying ideas against low offer levels. As a result of cautious trading and uncertain market conditions, March-loading cargo is being offered at lower prices to attract buying interest from the suppliers. The slow purchases and declining demand for new stock also led regional producers to revise their Ammonium Sulphate prices. The demand for Ammonium Sulphate from downstream fertilizer and pharma also ended up on a weaker note in the wake of adequate product supply.
Asia Pacific
This quarter, the Ammonium Sulphate market remains affected by limited purchasing activities with the disruption in supply/demand equilibrium compared with the previous quarter. The bidding price of Ammonium Sulphate slumped in the region due to sufficient product availability. Shipments from China to the Southeast Asian region traded lower with no firmer bids and weak market fundamentals. As a result of stockpiling, suppliers remain unwilling to increase prices due to the low volume of transactions in the regional market. In terms of demand, the consumption of Ammonium Sulphate from the downstream fertilizers and pharma sector remains feeble with cautiously operating manufacturing units. This month, the Ammonium Sulphate market was running weakly, with weak cost support.
Europe
The European region has sufficient supplies of Ammonium Sulphate, and suppliers are purchased on a need-to basis. By negotiating the prices and providing discounts, producers attempted to clear their existing stocks. The demand for Ammonium Sulphate from the downstream textile and pharma industry remains feeble, with limited bids and offers. A combination of recession fears and an uncertain economy declined the market. In Germany, the price of Ammonium Sulphate during March 2023 declined to USD 466/ton FOB Hamburg. Ammonium Sulphate demand softened amid economic concerns and high energy costs that forced producers to cutbacks. Suppliers and traders remain skeptical about increasing the prices due to feeble product requirements, and retailers complain about limited buyer interest.
For the Quarter Ending December 2022
North America
The sluggish demand from the downstream agricultural sector has subdued the market sentiments for Ammonium Sulphate in India. In October, the prices of Ammonium Sulphate have plunged by approximately 1.5% from September month's prices. The values of Ammonium Sulphate in the domestic US market have been under pressure due to a sufficient supply of downstream fertilizers and falling upstream Ammonia and Sulphuric Acid costs. The declining Ammonia and Sulphur acid prices and uncertainties in the terminal market have led to a fall in the benchmark prices of Ammonium Sulphate. The stockpiling of downstream fertilizers has tumbled the market demand and pressured the stockholder's quotations of Ammonium Sulphate to dip down.
APAC
The Ammonium sulphate market in the Apac region soared earlier than declined in the second half of the Q4. Manufacturers were less willing to produce in the face of increased demand uncertainty. Regarding agricultural Ammonium Sulphate demand, moderate storage orders and stock replenishment have supported the market, although the support is only temporary. Furthermore, in India, the market participants have stocked up their fertilizers inventories to avoid any imbalance for the upcoming planting season, Kharif. Also, the sanctions imposed by European Nations and the US on Russia have aided India, securing substantial supplies of fertilizers from Russia at deflated price.
Europe
In the recent quarter, Ammonium Sulphate prices declined in Europe as some sellers reduced the product's costs to lower levels, where buyers were willing to re-participate. However, High European natural gas prices continued to drive expectations of solid demand in the fourth quarter of 2022 as regional participants sought to replace local production with imports. On the demand side, the fears of recessions continued to weigh down on regional demand. The downstream industry's demand for Ammonium Sulphate has decreased. On the one hand, the compound fertilizer industry's operating rate fell by 5.8% to an absolute low and the autumn fertilizer season concluded. The price of Ammonium Sulphate in Europe remains under pressure.
For the Quarter Ending September 2022
North America
Ammonium Sulphate prices increased sharply during Q3 of 2022, attaining a price of USD 463/MT FOB Midwest. Transportation was restricted due to the lockdown's extension in major exporting countries like China, which led to slow trading activity both locally and internationally. Ammonium Sulphate prices increased in the US due to port congestion and the growing COVID problem in China's export market. Ammonium Sulphate prices increased due to strong market sentiment and rising demand from downstream fertilizers. Ammonium Sulphate demand in the United States has increased instead of market competitiveness as Brazilian traders were already stocking up on Chinese supplies.
APAC
During Q3, Ammonium Sulphate prices fell in the APAC region. The fall in raw material cost support and the subdued demand from the downstream fertilizer sector has had a negative impact on the Indian Ammonium Sulphate market. Additionally, spot transactions remain below average due to the decline in buying and selling activity on both domestic and international markets. Additionally, worries about global inflation drove up the cost of Ammonium Sulphate and caused a number of issues across the value chain. Due to falling feedstock prices, the price of Ammonium Sulphate continued to decline in the Chinese market. Due to Indonesia's market's fragile economy, downstream demand remained low, just like upstream demand.
Europe
Ammonium Sulphate Prices increased in Q3 due to rising feedstock Ammonia costs. Germany saw a sharp increase in inflation in July 2022. The supply remained moderate to low, and the market situation remained unbalanced. Despite the continued rise in energy prices, operating rates for domestic production were kept in check. Because of labor unrest and congestion in several German ports, access to goods from Asia and the US was hampered. Supply levels were inadequate due to falling inventory levels. The downstream fertilizer industry remained under pressure as the production of all sectors fell short of expectations. As they believed that the winter supply would be limited, downstream consumers started stockpiling fertilizers before the winter season's demand.
For the Quarter Ending June 2022
North America
In Q2, 2022, Ammonium Sulphate prices dipped in accordance with the falling feedstock Ammonia prices. Ammonium Sulphate prices fell on the back of mounting inventories and sluggish demand in the U.S. market during the last week. Weakened demand from downstream Industries has dragged the prices on a downward note. Meanwhile, manufacturers' quotations have declined, indicating a negative market sentiment. Furthermore, the total U.S. natural gas consumption fell by 3.2% compared with the mid-week values in April as colder-than-normal temperatures across the Midwest and Northeast moderated. Thus, the FOB prices declined roughly 1.3% and settled at USD 375/M.T. at New York port in April.
APAC
Ammonium Sulphate costs have surged considerably in the Indian market in Q2 2022 due to high demand. The margins have been impacted by the sharp increase in major raw material prices, including ammonia and Sulphuric Acid. Consistent rise in the prices for Ammonium Sulphates observed in the Indian market. The upstream ammonia is also keeping the trend intact. High demand for Ammonium Sulphate and short supply has forced the manufacturers to raise their offers. Meanwhile, an intensive blast at Deepak Nitrile at the Vadodara capacity is expected to raise the offers soon. Demand from downstream industries is also keeping the price trend upwards.
Europe
During Q2, the European market saw steady demand for Ammonium Sulphate, particularly from the agricultural sector, although production was nevertheless constrained by a lack of feedstock in the area. Due to route congestion and container shortages along important trade routes, exports from other continents, particularly Asia, were greater than expected. Ammonium sulfate costs increased as a result of these factors in the area. Since the beginning of the year, domestic demand for ammonium sulphate has improved the outlook for primary raw materials. The dynamics of ammonium sulphate are aided by rising demand from downstream sectors like construction and agriculture. Geopolitical tensions between Eastern European states and European nations' reliance on Russia for raw material exports have impeded the supply chain internationally.
For the Quarter Ending March 2022
North America
Prices for Ammonium Sulphate witnessed steady growth during the first quarter of 2022, owing to rising gas prices, high demand from the United States, supply issues, and market disruptions in the United States. The downstream agriculture sector is concerned about lack of fertilizer supplies since total inventory levels in all major sectors are below historic levels, while consumption has remained robust. Farmers and other downstream end users were apprehensive about the country's fertilizer costs ahead of the upcoming spring season. Due to high upstream values such as Natural Gas and Coal, prices in the global market have been growing for an extended period. The rebound in AS (Ammonium Sulphate) prices has been matched by Ammonia and Sulphur prices, raising the cost of the product range and benefiting companies that generate Ammonia on-site. Ammonium Sulphate was evaluated at USD 340/MT FOB Corn Belt pricing in the United States in the first quarter ending March 2022.
Europe
Global demand for Ammonium Sulphate has been rising since the beginning of the year, owing to improved market sentiments for primary raw materials. The dynamics of Ammonium Sulphate are supported by increased demand from downstream industries such as agriculture and building. The supply chain has been hampered globally by geopolitical tensions between Eastern European countries and European nations' reliance on Russia for raw material exports. The return of COVID-19 and the severe steps Chinese and Korean authorities adopted to combat its spread disrupted logistics across Europe. Ammonium Sulphate was estimated at USD 337/MT CFR Hamburg in the first quarter ending March 2022.
APAC
The price of Ammonium Sulphate is on the rise, owing to high raw material Ammonia and low Sulphur stockpiles. Fertilizer prices in China have been steadily growing for some time, owing to increased demand from other nations as well as higher freight costs. Firms were required to cease or reduce production as Beijing imposed stringent pollution rules in the run-up to the Winter Olympics in February 2022. China, a major exporter of urea, sulphate, and phosphate, has reduced fertilizer shipments to preserve local supplies since late last year, exacerbating a global price shock and risking escalating inflation. The price of energy sources such as coal and natural gas has grown worldwide due to shortages and winter heating needs, which has impacted the price of Ammonium Sulphate. Prices for Ammonium Sulphate increased during the quarter, settling at USD 318/MT FOB Qingdao.
For the Quarter Ending December 2021
North America
Because of a considerable increase in the value of the product as a result of a global nitrogen fertiliser scarcity, the price of ammonia in the fourth quarter of 2021 in the North American area soared dramatically. Ammonia supplies were slow in the third quarter as a result of the impaired availability of upstream nitrogen and sulphur as a result of Hurricane Ida. The market sentiments for Sulphuric Acid declined during the fourth quarter of 2021, following a consistent ascent the previous quarter. Furthermore, the average producer's price index for Sulphuric Acid in the United States was 206.10 points in the third quarter
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APAC
During the fourth quarter, prices for Ammonium Sulphate rose sharply, reaching INR 25450/MT CFR Kandla. The current Ammonium Sulphate market is being pushed by rising demand for fertilisers from the agriculture sector during the rabi crop season, as well as the fact that it is a key component in the production of several vaccines in the pharmaceutical industry. The rise in fertiliser prices has coincided with the rise in coal prices, pushing China to impose export restrictions. China is a major supplier of sulphate. South Korea's logistics industry is facing the brunt of China's export limitations, which have pushed up the price of Ammonium Sulphate in the regional market as well.
Europe
Market sentiments for Ammonium Sulphate in the European region remained soaring upwards in the fourth quarter of 2021. A supply constraint in Russia has pushed up domestic usage of the country's own natural gas, driving up costs. Lack of supply from the United States owing to Hurricane Ida-related interruptions, as well as a heat wave in the United Kingdom and other European countries that has affected wind generation, have all contributed to higher natural gas prices.
For the Quarter Ending September 2021
North America
The price curve of Ammonium Sulphate in North America experienced an upward trajectory during the third quarter. Since the beginning of Q1 in 2021, the demand for key fertilizers was strong in the USA, firstly due to spring sowing which began later than usual because of extreme weather conditions that disrupted the normal sowing of crops. Secondly, disruptions in the supply were encountered as imports of fertilizers were hampered due to extreme weather and production shortages around the world. Consumption was strong primarily by the agricultural and industrial sector, which resulted in strong demand for Ammonium Sulphate in the region. The North American fertilizer index showed staggering growth which led to high cost of Ammonium Sulphate for farmers. Increasing feedstock prices have been also at the forefront in driving the prices for fertilizers upwards in Q3.
Asia
During the third quarter of 2021, Ammonium Sulphate prices witnessed a considerable surge in the Asia Pacific region. In China, the supply of Ammonia continued to stay firm which resulted in soaring prices of Ammonium Sulphate across the region. Skyrocketing energy prices affected fertilizer production during September which aggravated fears among farmers regarding stocking activities. In India, the market trended up and Ex-Mumbai prices escalated from USD 319/MT to USD 384/MT during the third quarter. The demand for fertilizers remained firm in the domestic market amidst the arrival of the monsoon. Besides, high premium on Ammonia due to global shortage also aided the Ammonium Sulphate market. Owing to the high production cost, several manufacturers were compelled to transfer the cost increases consumers which resulted in the increment in the prices.
Europe
Prices of Ammonium Sulphate in the European market increased during the third quarter, as the demand for fertilizers from the domestic and international market surged in Q3 2021. The rise in demand for Ammonium Sulphate for downstream applications resulted in an uptrend in the European region. Consistent increase in the prices of raw materials globally further escalated the prices of upstream Ammonium Sulphate across the region.
For the Quarter Ending June 2021
North America
Demand for Ammonium Sulphate linearly improved within the quarter, as farming activities remained dull initially, which later improved with improvement in weather conditions. Post the effect of freezing fallout across Texas, USA experienced snowy and rainy weather at several parts of the country, which reduced the farming activities and ultimately decreased the demand for agricultural products in the country. However, later in May and June, prices of Ammonium Sulphate improved effectively following shortage in USA. In addition, subdued domestic production and supply commitment to other countries from major manufacturers, contributed to a steep rise in prices of Ammonium Sulphate in the country. Therefore, post the effective rise, prices of Ammonium Sulphate settled at USD 372/MT for FOB Texas during the month of June.
Asia
Ammonium Sulphate prices experienced a steep rise in APAC region during Q2 2021. In China, the demand initially remained muted from major importing countries, which later improved effectively from the domestic as well as from international market with improvement in economic and farming activities in major importing countries. Chinese traders revealed that they were uncertain about the demand from Indian market during this time frame, while several European countries restrained to buy Ammonium Nitrate from China due to skyrocketing prices. On the other hand, overall demand in the Indian market remained firm, where major fertilizer manufacturers like FACT gained fine profit in despite of COVID pandemic in the country. Therefore, market achieved firm growth during this quarter and prices settled at USD 221/MT and USD 294.3/MT during June 2021.
Europe
Prices of Ammonium Sulphate in the European market remained firm during this quarter, as the demand from domestic and international market was deemed sturdy. Rise in demand in USA amidst curtailed domestic production, increased the pressure on major European manufacturers to satisfy the overall requirements. Russian manufacturers were heard running their plants on high capacity to satisfy the overall domestic and international demand. In addition, consistent rise in raw material prices also impacted the prices of upstream Ammonium Sulphate across the region.
For the Quarter Ending March 2021
North America
Ammonium Sulphate production facilities were affected by extreme cold weather during Q1 2021. Several major manufacturing units were down during this period and led to material shortage across the region, plants like PCL nitrogen and Nutrien’s Borger plant remained idle during this time period. Although the domestic demand from the agriculture sector remained low as there was extreme cold condition and most of the land were covered with the snow. Despite of this, low demand from the domestic market, firm demand from other countries and shortage supported the FOB prices to rise by 6.9% and settle around USD 310/MT in March at Texas.
Asia
The Asian market witnessed lower demand for Ammonium Sulphate from the agricultural sector but received strong export demand from the US and Europe. Low inventory levels of Chinese manufacturers after lunar holidays, pressured the average prices to rise by 10.4% and reach USD 163.6/MT in the country. Similarly, in the Indian market most of the demand was coming from US and Europe, meanwhile congestion across the trading route halted trading activity between Asia and Europe, which led to a slight rise in prices of Ammonium Sulphate in the Indian market.
Europe
The European market witnesses a stable demand for Ammonium Sulphate during Q1 especially from the agriculture sector, although the production remained affected due to shortage of feedstock across the region. Exports from other continents especially from Asia were higher than anticipated amid route congestion and container shortages across prime trading routes. These conditions led to rise in the prices of Ammonium Sulphate across the region.
For the Quarter Ending September 2020
North America
Majority of Ammonium Sulphate produced in North America produces Caprolactam as a by-product. Local producers, due to oversupply situation of Caprolactam in the nylon markets are focusing on domestic Ammonium Sulphate market. However, production issues due to Hurricane Laura at the primary product caprolactam pushed up the pricing curve for the by-product AS during mid-August. As per our market sources, it is estimated that farmers in North America can potentially increase 1 million tonne demand for Ammonium Sulphate next year, thereby creating a huge opportunity for the regional Ammonium Sulphate market.
Asia
A rebound in Caprolactam price in northeast Asia eased the prices for Ammonium Sulphate in the region during the third quarter. Pent-up demand from the downstream fertilizer industry during the pandemic led to a substantial increase in the spot buyers. Encouraged by environment regulation policies, there was an upside potential in the demand of Ammonium Sulphate from those engaged in powerplant desulphurization. However, imposed travel restrictions kept the export volumes exceptionally low. The quarter ended with as new capacities of byproduct Caprolactam announced in Indonesia and Malaysia further create an oversupply situation. Price of Ammonium Sulphate was assessed around USD 123 per tonne CFR Southeast Asia in mid-September.
Europe
The restart of export-oriented plants in Russia and Ukraine saw a burst of sales activity in the Black Sea for late October and early November loadings. Spot supply from Russia and Ukraine was booked for the steady flow of cargoes for the rest of the year given that the region’s plant turnaround season is over. Spain and Turkey are booked to receive their usual contract volumes from various suppliers, while other countries also securing supply on spot basis for prompt arrival. However, as the governments and companies expected to get to grips with the second wave of the coronavirus, the demand of Ammonium Sulphate from the fertilizer manufacturers is expected to increase in Q4.
