Ammonium Nitrate Prices (Q1 2022)
Nitric acid is a raw material of ammonium nitrate. On March 28, the average price of nitric acid was 2316 RMB/MT and 2216 RMB/MT on March 1. In March, nitric acid climbed by 4.15%. Ningxia Runxia energy and Chemical Co., Ltd. produced 150000 concentrated acids and 98 concentrated nitric acid annually as of March 28. The factory's price per tonne was 2350 RMB. Shipping nitric acid was difficult, and there was less building in the downstream. The factory quotation of concentrated nitric acid was 2400 RMB/MT at Anhui Jinhe Industrial Co., Ltd., and the nitric acid shipping was satisfactory.
Ammonium Nitrate Prices (Q4 2021)
Prices remained stable in the fourth quarter due to strong local demand and growing raw material costs. While supply was insufficient to fulfill the region's entire demand, the fertilizer and mining sectors maintained a high level of demand. Additionally, increased input materials, ammonia costs, inflationary pressure, and logistical restrictions all played a role in this price increase.The rates were holding at 68740 INR/MT Ex-Mumbai in December, following a major price increase. Additionally, China's recent restrictions on fertilizer shipments raised worldwide concerns.
Ammonia prices surged in the fourth quarter of 2021 and are now on course to set a new European record. The high prices of ammonia and natural gas in Europe pushed ammonium nitrate prices higher in the region. Ammonia prices are increasing as a result of the natural gas shortage situation and reduced supplies from Russia amid mounting tensions in the Russia-Ukraine war.
In this quarter, the chemical was in great demand in the North American economy. During this time period, escalating ammonia prices, coupled with strong demand from diverse fields such as DAP and Urea, had an effect on ammonium nitrate pricing. Additionally, the rising price of natural gas had an effect on the prices of numerous fertilizers in the United States. The price of anhydrous ammonia increased throughout December in the US and settled at 1280 USD /MT. Additionally, global farmers' budgets were being squeezed by input expenses such as fertilizer, fuel, and transportation.
Russia, the world's largest fertiliser exporter, imposed a two-month export ban on the chemical. The decision could result in a reduction in fertiliser supply, particularly to South America, which is in the midst of its growth season. Russia’s export prohibition on ammonium nitrate is meant to keep more of its fertiliser supplies indigenous and is an attempt to control domestic prices. The move comes on the heels of China's suspension of phosphate fertiliser shipments until June 2022. Brazil is by far Russia's largest importer of ammonium nitrate and this move can affect its prices in Brazil.
Ammonium Nitrate Prices (Q1-Q3 2021)
During the March quarter, Asian countries saw growing interest for ammonium nitrate fertilizer from the domestic agriculture sector. With the start of harvest season Zaid in India, and buoyed attitudes following a reasonably strong crop in the preceding quarter, demand for the chemical in the Indian industry improved significantly. Indian imports increased year on year in Q1 2021. Meanwhile, a similar trend was observed in the Chinese market, where seasonal demand remained continuously strong.
During the second quarter, the market saw strong demand from the domestic economy, backed by high offtake from end use segments. In India, the market for the chemical was continuously strong throughout the quarter, while feedstock ammonia prices increased significantly as a result of high demand and insufficient supply. While in China, local prices stayed persistently firm as the country's seasonal demand approached. However, rising ammonia prices had an effect on the country's ammonium nitrate prices throughout this time period.
The market experienced an upward bounce in Q3 2021, accompanied by a sharp increase in upstream ammonia pricing and robust offtake from downstream segments. In India, the price increased exponentially throughout the quarter, owing to the sharp increase in raw material costs coupled with strong domestic demand. Additionally, India's fertilizer inventory was insufficient to fulfill seasonal demand requirements, which resulted in an increase in the product's price during this time period. To alleviate farmers' price burdens, the government made measures to rein in frequent price changes for the chemical in the area. Additionally, China's limits on fertilizer exports worried merchants about supply. As a result, prices reached 1662.83 USD/MT in September, a substantial increase from July.
Spring's arrival boosted market sentiments in Europe, as demand remained consistently robust throughout the quarter. However, in other locations, unfavorable climate conditions temporarily halted agricultural activity, which quickly recovered. Thus, prices increased significantly in Europe for practically all fertilizers, including ammonium nitrate, particularly in the UAN fertilizers segment, which was shown to have a larger demand than other alternatives.
During Q2, the European market saw strong demand for the chemical. Yara, a significant producer, recently revealed their revised seasonal rates for Europe. Surprisingly, the corporation offered the chemical at a cheaper price than previously offered.
Prices increased significantly in the European market in Q3 2021, as demand for fertilizers from both the domestic and global markets increased. Consistent increases in the prices of raw materials on the international market pushed up Ammonium Nitrite prices throughout the region. Additionally, higher freight costs and rising demands for ammonium nitrite led to an upward trend in Europe.
Throughout Q1 2021, the North American market suffered a severe scarcity of the chemical. Following the winter storm Uri's February impact on the US Gulf Coast, the accessibility of feedstocks ammonia and nitric acid decreased significantly as a result of reduced manufacturing activity. However, demand for fertilizers halted for more than a month during this time period due to snow and heavy rains. This demand improved significantly in March, and the overall prices increased by more than 20% across Nebraska farms during the quarter.
The chemical was in high demand in the North American market in the second quarter. A large company in the United States reported steady offtakes from the domestic fertilizer market in May, as the climate conditions improved for farming. Additionally, rising ammonia prices in the face of strong demand from various verticals such as DAP and urea influenced the price of ammonium nitrate throughout this time period. Additionally, shifting natural gas prices had an effect on the prices of several fertilizers in the United States, notably ammonium nitrate.
The market remained strong in Q3 2021, owing to increased demand from the agriculture sector. As the economic growth progressed toward pre-pandemic levels, the price of ammonium nitrite increased. Supplies remained scarce throughout the quarter, owing to higher upstream ammonia costs as a result of the Ida hurricane, which made landfall on the Gulf Coast of the United States of America in late August.
Brazil initiated discussions to increase fertilizer production for the indigenous agriculture industry, but progress slowed down due to the country's high reliance on imports. Problems in negotiating for the natural gas required to produce nitrogen is one of the causes for Brazil's low fertilizer production and high price of ammonium fertilizers. Domestic consumption for inputs had been robust, while the Brazilian Real's depreciation against the US Dollar increased the cost of imports. Brazil's fertilizer imports exceeded estimates, reaching 41.6 million metric tonnes in 2021, an increase of 38.9% from 34.2 million metric tonnes in 2020.
Ammonium Nitrate Prices Overview 2020
Ammonium Nitrate (AN) demand in India surged dramatically with the advent of the Rabi season. India obtained AN from a variety of key suppliers, including Russia. It did not, however, result in substantial supply interruptions throughout the region. Rabi season in India also impacted the AN demand in Europe, as significant quantities were diverted to India from various nations. There were no cases of force majeure or plant closures, as European firms maintained uninterrupted output and met domestic demand. October's increase in AN use missed the mark of market estimates due to limited harvesting, market uncertainty, and financial concerns. November began slowly, but demand picked up toward the end.
Fertilizer prices in Europe improved dramatically in the third quarter of 2021. The prices in European markets increased as a result of rising feedstock prices, namely Ammonia, rising input costs which came as a result of the energy crisis, and rising Natural gas prices, a critical component in fertilizer synthesis. Additionally, rising freight costs and a supply shortage of shipping containers wreaked havoc on the prices in the third quarter. Nitrogen fertilizers were scarce and in high demand worldwide in Q4.
Supply remained robust in Q4 despite a fall in demand as the US harvest season came to an end. Demand decreased continuously as harvesting progressed, however farmers continued to benefit from favorable prices of the chemical. Winter's early arrival and progression resulted in an abrupt cessation of additional fertilizer application in fields.
In 2020, the country's demand for NPK fertilizer, of which ammonium nitrate is a critical feedstock, reached 41 million tonnes, with imports accounting for 80% of this. Meanwhile, domestic production reached its lowest level in years, down 11% from the previous year.
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About Ammonium Nitrate:
Ammonium Nitrate is widely available both as colourless crystalline solid and processed prills for specific applications. It is miscible in water. It is utilised to make fertilisers and explosives. It is also utilised as a nutrient in producing antibiotics and yeast.
Chemical Formula of:
The commercial manufacturing of ammonium nitrate from ammonia entails the acid-base reaction of ammonia with nitric acid. After the solution is formed, usually at about 83% concentration, the excess water is evaporated to an ammonium nitrate (AN) content of 95% to 99.9% concentration (AN melt), depending on grade.
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