Ammonium Oxide Price Trend and Forecast

Ammonium Oxide Regional Price Overview

Get the latest insights on price movement and trend analysis of Ammonium Oxide in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Ammonium Oxide Price Trend for the First Half of 2024

Asia

In the first half of 2024, the ammonium oxide market exhibited varying trends across different regions, reflecting the fluctuations observed in its feedstock, ammonia. Ammonium oxide, which is capaciously consumed in fertilizers, explosives, and various chemical processes, is significantly influenced by the broader market dynamics of ammonia.

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In Asia, the market for ammonium oxide experienced a mixed trajectory during the first quarter of 2024. The initial period saw a decline in demand from the agricultural sector, leading to a decrease in production activities. However, as the sowing season approached, demand picked up, causing a rebound in market activity. This resurgence, coupled with the fluctuating energy costs, provided some stability in the later months of the quarter. The overall trend in Asia was marked by an oscillating price pattern, reflecting the region's cautious procurement practices and the variable demand from downstream industries.

Europe

In Europe, the ammonium oxide market faced downward pressure, much like the ammonia market. The region struggled with lower production costs due to subdued natural gas prices and weaker demand from key sectors. Despite the onset of the spring application season, which typically boosts demand for fertilizers, the market remained under pressure due to logistical challenges and a cautious approach from producers. This resulted in a persistent southward trend in the market, with only slight recoveries observed as the quarter progressed.

North America

North America saw a fluctuating trend in the ammonium oxide market, heavily influenced by the agricultural sector's performance. The region experienced reduced demand during the early months of the year, driven by adverse weather conditions that disrupted planting activities. However, as production rates stabilized and restocking activities resumed, the market showed signs of recovery. The overall sentiment in North America remained cautious, with the market reflecting both upward and downward movements in response to the varying demand for fertilizers and other industrial applications. Overall, the ammonium oxide market observed a varying price trajectory for the majority of H1'24.

Analyst Insight

According to Procurement Resource, the Ammonium Oxide market is expected to grow further in the coming months. The changing weather patterns are imparting uncertainties on the agriculture sector; however, the fertilizer sector is likely to sustain the ammonium oxide demands in the coming months.
 

Ammonium Oxide Price Trend for the Second Half of 2023

Asia

In the second half of 2023, the ammonium oxide market exhibited varied trends across key regions, mirroring the fluctuations observed in the ammonia market, its precursor. Ammonium oxide, widely utilized in industrial applications such as fertilizers, explosives, and cleaning agents, plays a critical role in numerous sectors due to its reactivity and effectiveness as a chemical base. In Asia, the ammonium oxide market saw a significant rise in demand driven by both domestic and international markets, particularly in the agricultural and chemical sectors.

However, the market faced challenges with supply chain disruptions, which constrained the availability of raw materials. This supply-demand imbalance, compounded by the intermittent shutdown of production facilities in key manufacturing hubs like China, led to a surge in market activity, pushing prices upward. The fluctuating production rates contributed to the volatile nature of the market during this period.

Europe

In Europe, the ammonium oxide market experienced a mixed trajectory. The third quarter began on a positive note, supported by strong demand from the fertilizer and industrial cleaning sectors. However, as the quarter progressed, disruptions in natural gas supply and fluctuations in raw material costs, coupled with weak European currency performance, led to a less predictable market. The adverse weather conditions later in the year further exacerbated the situation, particularly affecting the agricultural sector, which is a major consumer of ammonium oxide. These factors collectively caused the market to experience both upward and downward shifts, reflecting the complex interplay of supply chain and demand-side pressures.

North America

North America's ammonium oxide market followed a somewhat similar pattern. Initially, the market was buoyed by strong demand from the agricultural sector despite the challenges posed by drought conditions. Restocking efforts by fertilizer producers provided some stability, but as the year progressed, the market softened. This was particularly evident in the latter part of the year when disruptions in export routes, notably the Panama Canal, led to an accumulation of inventories.

The resulting oversupply, combined with a cautious approach by consumers, caused the market to experience a downturn. Overall, the ammonium oxide market in H2'23 was marked by regional variability, with each region responding differently to the fluctuations in supply, demand, and external factors such as weather and logistical challenges. Despite the challenges, the industrial significance of ammonium oxide ensured continued market activity, albeit with notable fluctuations across the board.

Analyst Insight

According to Procurement Resource, similar fluctuations are anticipated in the Ammonium Oxide prices going forward; the markets will remain driven by the supply and demand equation moving ahead.
 

Ammonium Oxide Price Trend for First Half of 2023

Asia

The Ammonium oxide market in the Asia Pacific region portrayed a bearish outlook in 2023 as its prices declined consistently. This drop in the price trend of Ammonium oxide was mainly attributed to subdued demand from downstream industries. The decline was gradual during the first quarter but became much more intense in the second quarter. In addition to this, the fertilizer sector, which relies heavily on nitrogen-based products, struggled with the problem of oversupply, further contributing to the downward price trend of Ammonium oxide in the Asia Pacific.

Europe

In Europe, the Ammonium oxide market and its derivative products were predominantly influenced by falling production costs as the natural gas; hence, the prices declined consistently during the first and second quarters of 2023. Further, the entire European region faced weakened market sentiment and reduced demand from downstream industries, collectively contributing to the negative price trend of Ammonium oxide.

North America

Ammonium oxide prices dipped in the first and second quarters of 2023 due to a significant decline in demand from both local and international buyers. An increase in imports also impacted the price trend, as new import sources disrupted the region's supply and demand dynamics.

Analyst Insight

According to Procurement Resource, the price trend of Ammonium oxide is estimated to struggle. The demand scenario from the downstream fertilizers sector will be the major factor determining the trajectory of ammonium oxide prices.

Procurement Resource provides latest prices of Ammonium Oxide. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.