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
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.
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.
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.
