During the first half of June 2024, the price of Ammonium Chloride prevailed in divergent trends in the global market. A price surge in Asia was observed which can be attributed to the increasing price of essential feedstock materials Ammonia and upstream Natural Gas during this period. The elevated price of feedstock material prompted heightened production rates thus exerting upward pressure on Ammonium Chloride prices. In addition to this, demand from the downstream fertilizer market remained firm, and modest inquiries were observed. However, the Ammonium Chloride market experienced a bearish trend in North America despite of favourable weather conditions for crop planting.

The Indian Ammonium Chloride market exhibited optimistic sentiments during the concluding week of June 2024. During this period, demand for Ammonium Chloride from the prominent downstream fertilizer sector was modest. The Indian Meteorological Department’s forecast of a good monsoon, following below-average rainfall in FY24, is a positive indicator for fertilizer sales. However, it is still early in the monsoon season, and any delays or suboptimal rainfall could negatively impact this outlook. Simultaneously, there was a surplus of fertilizer inventories, including Ammonium Chloride. Insights gathered from various market participants suggest that fertilizer stocks such as NFL, RCF, GSFC, GNFC, and FACT rocketed to an all-time high in a weak market, driven by hopes that proposed tax cuts will boost fertilizer demand.

On the other hand, The North American Ammonium Chloride market continued to decline during the first half of June 2024. Further, there was a surplus of domestically produced Ammonium Chloride in the Indian market. Insights from various market participants indicate that while US manufacturing activity remained in contraction territory in June, output in the chemicals sector was robust. Simultaneously, demand from the domestic and international fertilizer markets remained constrained. Over the past few weeks, an active weather pattern has brought rounds of heavy rain and thunderstorms to portions of the Western Corn Belt, creating favourable conditions for corn planting— a stark contrast to the adverse weather conditions faced in June of the previous year. The Drought Monitor released for June 2024 showed no areas of drought in southern Minnesota and northwest Iowa. Despite this, farmers in the country have surprisingly adopted a wait-and-see approach to securing fertilizers, including Ammonium Chloride, as they anticipate further price declines.

It is anticipated that the prices of Ammonium Chloride may increase further in the upcoming days. This prognosis is chiefly attributed to increasing feedstock prices and an expected surge in the seasonal demand.