Ammonium Sulphate Prices (Q1 2022)
During Q1 of 2022, the operating rate of ammonium sulphate fell, and the market environment was light. The price of coking grade ammonium sulphate was weak, the market was mostly quiet, and the transaction was standard. The price of caprolactam-grade ammonium sulphate had dropped as a result of the downward trend. The price dropped by 50-180 RMB/MT in the first quarter of 2022. On February 14, the mainstream ex-factory price of coking grade ammonium sulphate in Shandong was 1,300-1,380 RMB/MT, the mainstream ex-factory price of coking grade ammonium sulphate in Hebei was in the range of 1,280-1,380 RMB/MT, while it was 1400 RMB/MT in Heilongjiang.
Ammonium Sulphate Prices (Q4 2021)
In the final quarter of 2021, the prices witnessed a steep rise, reaching a value of 25,450 INR/MT. The rising demand for fertilizers in the region during the rabi crop season had been a major driver for the chemical’s market in the agricultural sector. It also finds a key application in the pharmaceutical industry in the production of vaccines. The price rise of both coal and fertilizers drove China to restrict exports which affected the ammonium sulphate prices as China was the major sulphate supplier. South Korea was facing problems in the logistics industry due to the export limitations imposed by China which in turn increased prices in the domestic markets.
In the fourth quarter of 2021, the market sentiments in Europe soared high. In Russia, a supply constraint pushed up the consumption of the domestic natural gas which drove up the costs. The hurricane Ida caused supply disruptions from the US, along with problems caused by the heat wave in United Kingdom and several other European countries which affected the wind generation and contributed to the elevated levels of natural gas prices in the region.
The scarcity of nitrogen fertilizer globally caused the chemical’s prices to increase considerably as ammonia prices in North America soared high in the final quarter of 2021. In the third quarter, ammonia prices had been slow due to the limited availability of upstream sulphur and nitrogen due to the aftermath of the Hurricane Ida.
Ammonium Sulphate Prices (Q1-Q3 2021)
The market in Asia witnessed a low demand from the agriculture industry, even though export demand was strong from Europe and US. The Chinese inventories suffered low levels due to the lunar holidays which increased the average prices by 10.4% and reached 163.6 USD/MT in the region. A similar pattern was observed in India as demand was high from Europe and US while in the meantime the trading routes affected the trading activities between Europe and Asia which increased its prices slightly in India. During the second quarter of 2021, there was a steep rise in the prices in the Asia-pacific region.
The demand in China from major importing countries remained muted initially which improved later on effectively from domestic and international markets as farming and economic activities improved in major importing countries. The demand from India was uncertain in China during this time frame. In the meanwhile, European countries reduced their purchases of ammonium nitrate from China as prices continued to skyrocket. The demand from the Indian market on the other hand, remained firm as major fertilizer producers like FACT were gaining decent margins even amidst the pandemic situation in the country. The market received strong growth in the second quarter and the prices remained between 221 USD/MT and 294.3 USD/MT in June 2021.
Prices in the third quarter of 2021 surged considerably on the Asia-Pacific region. The ammonia supply in China remained firm which caused the ammonium sulphate prices to soar in the region. The energy prices were skyrocketing in September, which in turn affected the fertilizer production, aggravating fears related to stocking activities amongst farmers. The market for the chemical went up in India and the prices in Mumbai went from 319 USD/MT to 384 USD/MT in the third quarter. The onset of monsoon ensured that the demand remains high in the domestic market. The global shortage of ammonia increased its prices which in turn increased the prices for ammonium sulphate. The high production costs compelled several major manufacturers to transfer the cost which resulted in a further increment in prices.
The market in Europe witnessed a stable demand during the first quarter of 2021, especially from the agriculture industry even though the production was still affected by the shortage of feedstock in the region. The export demand from continents like Asia were higher than anticipated which caused the prices to increase in the region coupled with factors such as congestion in route channels and shortages of containers in major trading routes.
In the European market, the prices remained firm during the second quarter of 2021, as demand remained strong from both domestic and international markets. The increase in demand in US amid restrained domestic production pressurised the major manufacturers in Europe to meet the supply requirements. Plants in Russia were running in their maximised capacities to meet the overall demands in domestic and international markets. Additionally, raw material prices were increasing consistently which also in turn affected the upstream ammonium sulphate prices in the region.
The market prices increased during the Q3 2021, with the surge in domestic and international demand for fertilizers in the third quarter. The chemical’s demand increased in the downstream sectors, which resulted in an upward trend in the prices in the European region. The raw material prices had been rising consistently on a global level, which escalated the ammonium sulphate prices in the region.
In North America, the production facilities of ammonium sulphate were affected by the harsh cold weather during the first quarter of 2021. In this period many of the major manufacturing units halted due to shortage of material in the region like in Nutrien’s Borger Plant and PCL nitrogen which remained idle. The domestic demand from agricultural sector was low due to the unfavourable weather conditions and most of the fields being covered with snow. Even though there was low demand for the chemical in the domestic market, there was a still strong demand from other counties and the product shortage caused the FOB prices in Texas to rise by almost 7% and settle at around 310 USD/MT in March.
The demand in North America improved linearly in the second quarter as farming activities which had previously been dull improved later with the improving weather conditions. Post the aftermath of the freeze-fallout in Texas, the US witnessed rainy and snowy weather in several regions of the country which had slowed down the farming activities, ultimately decreasing the demand in the agricultural sector. In May and June, however, the prices improved due to limited product availability in the US. Additionally, the supply commitment for export to other countries from major producers and the subdued domestic production contributed to the sharp rise in its prices in the country. The FOB prices settled at 372 USD/MT in Texas during June following an effective price rise.
The market witnessed an upward price trend during the third quarter of 2021. Since the beginning of first quarter of 2021, the fertilizer demand was firm in the US, as the spring sowing had been delayed slightly owing to the disruptions in the sowing of crops caused by the weather conditions. There were also supply disruptions, as fertilizer imports were hampered due to the unfavourable weather and shortages in production in the world. The consumption from industrial and agricultural sectors were firm which increased the ammonium sulphate demand in the region. A staggering growth of the ammonium sulphate market was reported by the North American fertilizer index which increased the prices for farmers. The prices were also been driven by the increasing feedstock prices in the third quarter.
Ammonium Sulphate Prices Overview 2020
In the northeast Asia, the caprolactam prices rebounded which eased the ammonium sulphate prices in the region during the third quarter of 2020. The restrained demand due to the pandemic from downstream industries like fertilizers caused a significant increase in buyers. The demand potential for the chemical was affected positively by the environment regulation policies especially from the industries involved in powerplant desulphurisation. Travel restrictions however affected export volumes keeping them exceptionally low. In 2020, renewed by-product capacities of caprolactam in Malaysia and Indonesia created a situation of oversupply. In Southeast Asia, the prices were reported around 123 USD/MT during September 2020.
In Russia and Ukraine, the export-oriented plants restarted which led to a boost in sales activities around the black sea during October and November. Russia and Ukraine were booked for spot supplies for the stable cargo flow for the remaining part of the year as the plant turnaround season was over in the region. Turkey and Spain had been booked to get their contract of volumes from suppliers while other nations secured supplies on spot basis. As companies and government were recovering from the impact of the second wave of the pandemic, the chemical’s demand from the fertilizer manufacturing industries increased in the final quarter of 2020.
Caprolactam is a major by-product formed alongside ammonium sulphate in North America. As the caprolactam market demand from nylon market was suffering due to oversupply, local producers focused on the domestic market of the chemical. The prices increased as the production of caprolactam suffered due to the hurricane Laura during mid-August. Farmers were estimated to increase potentially the demand for the chemical by 1 million tonne in the upcoming year which could create a huge market opportunity for it regionally.
Procurement Resource provides latest prices of Ammonium Sulphate. 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.
Procurement Resource provides prices of Ammonium Sulphate for several regions around the globe, which are as follows:
About Ammonium Sulphate:
Ammonium Sulphate is an inorganic sulphate salt that is derived by the reaction of sulphuric acid with two equivalents of ammonia. It is widely utilised as a fertiliser for alkaline soils. It is also known as an ammonium salt and an inorganic sulphate salt.
Chemical Formula of Ammonium Sulphate:
Ammonium Sulphate is produced by treating ammonia, which is a by-product of coke ovens, with sulphuric acid.
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The displayed pricing data is derived through weighted average purchase price, including contract and spot transactions at the specified locations unless otherwise stated. The information provided comes from the compilation and processing of commercial data officially reported for each nation (i.e. government agencies, external trade bodies, and industry publications).