The global Ammonium Chloride market exhibited mixed trends in early January 2025. North America faced supply shortages due to disrupted feedstock imports, driving price pressures. In Europe, stable market conditions were supported by expanded production capacities, ensuring steady supply. Meanwhile, the Chinese market saw declining prices due to subdued demand ahead of the Lunar New Year Festival and stable manufacturing activity. These trends highlight regional disparities influenced by supply, demand, and infrastructure challenges.

The European market exhibited stability during this period. BASF, a prominent producer of Ammonium Chloride, expanded its production capacity by 50% at its Ludwigshafen site. The successful start-up of this upgraded facility introduced a more efficient production process, enabling the company to meet growing demand for high-quality Ammonium Chloride. This strategic move not only enhanced product quality but also strengthened BASF's position in the European market, ensuring a steady supply to cater to increasing demand across various applications. These regional dynamics

Similarly, In the Chinese Ammonium Chloride market, prices have continued to weaken due to a combination of stable supply and subdued demand. Export volumes remain minimal, with no significant recovery expected in the short term. Manufacturing operations have maintained consistent operating rates, leading to adequate supply and downward price pressure. Notably, factories in Shandong further reduced prices of various nitrogen based fertilizers including Ammonium Chloride early in the month, deepening the overall decline. Demand-side dynamics have been significantly impacted by seasonal factors as the pre-Lunar New Year off-season slows market activity. Fertilizer procurement is notably low, and downstream industries have reduced their operational rates, contributing to weakened industrial demand. This decline in buying activity, coupled with sufficient inventory levels, has created a bearish market sentiment. Moreover, limited export opportunities and muted domestic consumption reflect the broader market challenges, with manufacturers facing difficulties in reviving price stability.

In contrast In the North American market, Ammonium Chloride prices elevated slightly in the first half of January 2025. The inventories remained constrained during the review period. This shortage stemmed from limited availability of imported Ammonia and Hydrochloric Acid (HCl), primarily due to rail disruptions and curtailment of Natural Gas supplies in key exporting regions such as Canada and Trinidad. While Natural Gas supply constraints in Trinidad have begun to ease, their lingering effects continue to impact the production of critical derivatives, including Ammonium Chloride. On the demand side, purchasing activity for Ammonium Chloride has shown periodic fluctuations, with intermittent restocking efforts reflecting market uncertainties.

As per ChemAnalyst, Ammonium Chloride prices are expected to rise in the near future due to increasing feedstock costs and anticipated higher seasonal demand. As feedstock prices, such as those for ammonia and hydrochloric acid, continue to climb, production costs will also rise, putting upward pressure on Ammonium Chloride prices.