Illinois anhydrous ammonia prices are sharply higher than the prior two years and remain volatile, driven by the war in Iran and Strait of Hormuz logistics risks. Elevated costs are expected to persist into fall fertilizer application season.
India relies on imports for 90% of its DAP, primarily from West Asia and North America. Geopolitical tensions in the Persian Gulf and Strait of Hormuz threaten supply, increasing price volatility and likely pushing DAP costs upward.
| Product | Region | Incoterm Basis | Price | Last Updated Month |
|---|---|---|---|---|
| Ammonia | China | FOB | USD 339/MT | June 2026 |
| Ammonia | India | CIF | USD 426.9/MT | June 2026 |
| Ammonia | USA | CIF | USD 494.3/MT | June 2026 |
| Ammonia | Brazil | CIF | USD 511.0/MT | June 2026 |
| Ammonia | Canada | CIF | USD 494.3/MT | June 2026 |
| Ammonia | China | FOB | USD 360.52/MT | May 2026 |
| Ammonia | India | CIF | USD 427.86/MT | May 2026 |
| Ammonia | USA | CIF | USD 479.71/MT | May 2026 |
| Ammonia | Brazil | CIF | USD 492.52/MT | May 2026 |
| Ammonia | Canada | CIF | USD 485.52/MT | May 2026 |
Stay updated with the latest ammonia prices, historical data, and tailored regional analysis
Asia
In China, ammonia prices fell from ~USD 408.81/MT to ~USD 339.00/MT, respectively, in the first and last month if the second quarter of 2026, showing a ~17.1% decrease during the said period. The market strengthened slightly early in Q2 as maintenance activities and temporary operating disruptions reduced availability, while agricultural and industrial buyers increased purchases. Conditions reversed in May as restarted plants improved supply, fertilizer producers reduced procurement and buyers shifted to immediate purchasing. Chinese ammonia demand weakened from urea, compound fertilizers, nitric acid and caprolactam sectors, limiting price recovery. In India, ammonia prices declined to ~USD 458.70/MT in April and ~USD 426.90/MT in June, showing a ~6.9% decrease. Fertilizer demand ahead of the Kharif season provided support, with expected fertilizer requirements reaching 390.54 lakh tonnes and available stocks covering over 51% of demand. Higher inventory availability reduced the need for urgent ammonia imports despite continued shipping risks.
Europe
In the European region, the ammonia price graph displayed mixed trends during Q2'26. Ammonia prices remained supported early in Q2 due to high natural gas costs, reduced domestic production economics and supply uncertainty from disrupted imports. Gas expenses remained a major challenge, with European producers facing significantly higher energy costs compared with US suppliers. However, weak downstream demand limited further price increases. Euro-area industrial production increased only 0.1% month on month in April, restricting ammonia consumption from chemicals, explosives, refrigeration and industrial applications. Cautious fertilizer buying and uncertainty around carbon-related import requirements reduced inventory building, keeping the market balanced despite high production costs. By the end of the quarter, the ammonia prices showed a slight decline as the natural gas prices normalised.
North America
In the United States, ammonia prices were ~USD 495.81/MT in April to ~USD 494.30/MT in the last month of Q2’26. The market received early support from global supply disruptions but weakened later as domestic availability improved. Meanwhile, Woodside’s Beaumont New Ammonia facility in Texas added up to 1.1 million tonnes annually of production capacity during the quarter, improving regional supply security and reducing import dependence. Furthermore, adequate natural gas availability by the end of the quarter supported producers. However, lower US corn planting of 95.3 million acres reduced potential nitrogen fertilizer demand growth. Overall, the ammonia price curve witnessed limited fluctuations during the second quarter of 2026.
Analyst Insight
According to Procurement Resource, ammonia prices are likely to remain sensitive to fertilizer demand, natural gas costs, production reliability and trade flows, with seasonal agricultural buying providing potential support.
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Asia
In India, during the first quarter of 2026, the average ammonia price stood at around INR 39.19/KG, with prices recorded near INR 38.85/KG in January, INR 38.60/KG in February, and rising further to nearly INR 40.12/KG in March. On a quarter-on-quarter basis, prices increased by approximately ~1.5%, while January to March prices witnessed a gain of around ~3.3%. The ammonia price trend across the Asian market reflected tightening global supply conditions and rising geopolitical uncertainty during Q1’26. The quarter initially remained stable due to sufficient domestic inventories and subdued downstream demand; however, escalating Israel-Iran tensions and disruptions in Middle Eastern exports significantly impacted market sentiment during the latter half of the quarter. Higher LNG prices, increased freight charges, and constrained import availability further supported the upward pricing momentum.
Europe
Ammonia prices in Europe mimicked the global firm-to-rising trend in early 2026, driven by tightening supply and policy-led cost pressures. The implementation of the Carbon Border Adjustment Mechanism (CBAM) increased import costs, while sanctions and tariffs on Russian fertilizers led to an over 80% collapse in imports, significantly tightening availability.
The EU also proposed caps on Russian ammonia imports, further straining supply. Simultaneously, uncertainty around CBAM delayed green ammonia investments, though new developments like the India-Europe renewable ammonia offtake agreement signal efforts to diversify supply and support long-term decarbonization.
North America
Ammonia prices in the USA rose, driven by global supply disruptions and seasonal demand pressures. The escalation of the Iran conflict and subsequent blockage of the Strait of Hormuz disrupted nearly one-third of global fertilizer trade, significantly tightening nitrogen and ammonia availability. This led to notable price spikes, with ammonia prices rising globally.
Additionally, constrained exports from key producers in the Middle East and China, coupled with logistical bottlenecks and supply chain uncertainties, intensified market volatility. Domestic factors such as strong spring planting demand, limited pre-purchasing by farmers, and government scrutiny over pricing practices further shaped market dynamics.
Ammonia is a colourless alkaline gas which is one of the most widely available nitrogen-containing compounds in the atmosphere. It is also known as an irritant having a characteristic pungent odour that is typically utilised at a commercial scale. Ammonia is highly miscible in water and, upon inhalation, is deposited in the upper airways.
NH3
Purify water supplies, Fabrics, Plastics, Pharmaceuticals, Explosives
7664-41-7, Azane, Ammonia gas, Spirit of hartshorn
Yara International, Qatar Fertiliser Company, Nutrien Ltd., Jordan Phosphate Mines Company Limited, Eurochem Group AG, Yidu Xingfa Chemical Co., Ltd., Yunnan Yuntianhua International Chemical Co., Ltd, Chemische Fabrik Budenheim KG, Innophos, Inc., Maaden-Saudi Arabian Mining Company
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In the Haber process, hydrogen is produced via natural gas, which is further combined with nitrogen in the presence of iron to finally form Ammonia.
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The report is a detailed study of economics of production of nitric acid by Ostwald’s Process. This process involves the high-temperature oxidation of anhydrous ammonia to nitric oxide in the presence of platinum or rhodium gauze.
This report provides the economy of producing ammonia by partial oxidation method.
This report provides the cost structure of ammonia production by Haber Process.
The report is a detailed study of economics of ammonium nitrate by the reaction of nitric acid on anhydrous ammonia resulting in an aqueous ammonium nitrate solution.
Ammonia Manufacturing Plant Project Report thoroughly focuses on every detail that encompasses the cost of manufacturing. Our extensive cost model meticulously covers breaking down expenses around raw materials, labour, technology, and manufacturing expenses. This enables precise cost structure optimization and helps in identifying effective strategies to reduce the overall cash cost of manufacturing.
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