- Global ammonium sulphate prices strengthened in Q1’26 as the Iran war and Strait of Hormuz disruption restricted fertilizer trade flows, with shipping activity dropping sharply and nearly one-third of global fertilizer trade exposed to the route
- Feedstock pressure increased as ammonia and sulphur supply chains tightened, with sulfur shortages and energy disruptions raising production costs across nitrogen fertilizers
- Downstream demand remained firm from agriculture, with fertilizer consumption sustained during key planting cycles despite supply uncertainty.
Asia
Ammonium sulphate prices in Asia followed a strong upward trend in Q1’26, supported by tightening domestic supply, higher upstream costs, and steady fertilizer demand. The prices were ~1.12 RMB/kg (CFR) in January and ~1.59 RMB/kg (CFR) in March. This quarter’s prices were ~21.07% higher than the previous quarter, while prices increased by ~41.60% from January to March. Supply tightened as export availability from China remained constrained while demand from India and Southeast Asia stayed firm. The Strait of Hormuz disruption reduced ammonia and fertilizer-linked flows, increasing freight risks and limiting import availability, which supported price momentum across the region.
Europe
Ammonium sulphate prices in Europe trended upward during Q1’26 due to elevated ammonia-linked costs and reduced supply flexibility. Natural gas volatility increased upstream ammonia costs, which directly supported ammonium sulphate production costs. At the same time, import availability remained uncertain due to disruptions in Middle East supply chains. About one-third of the global fertilizer trade moves through the Strait of Hormuz, and the sharp fall in vessel movement significantly raised supply concerns across Europe, especially during the pre-season fertilizer demand period.
North America
Ammonium sulphate prices in North America remained firm with a moderate upward trend in Q1’26, supported by steady domestic demand and global nitrogen tightness. Spring planting demand sustained fertilizer consumption, while global trade disruption influenced replacement costs. Although domestic production reduced supply risks compared to other regions, the integrated global fertilizer market transmitted cost pressure from disrupted Middle East flows and higher upstream ammonia and sulphur values.