Global Ammonium Sulphate Market Faces Downturn Amidst Dull Seasonal Demand in March 2024

In March 2024, the Ammonium Sulphate market continued its downward trend in European and Asian market, mirroring the trajectory observed in the previous month. This decline can be primarily attributed to the diminishing costs of key raw materials, notably Ammonia and natural gas. The decrease in Ammonia prices, in particular, has substantially lowered production expenses, thereby exerting downward pressure on market prices for Ammonium Sulphate. Further, a notable decrease in demand from major downstream fertilizer markets, coupled with diminishing planting activities, has further contributed to the overall decline in prices. As planting activities decrease, the demand for fertilizers, including Ammonium Sulphate, experiences a corresponding reduction, thereby exacerbating the downward pressure on prices within the market.

Throughout March 2024, the European Ammonium Sulphate market has continued its downward trajectory, consistent with trends observed earlier in the month. Adverse weather conditions, particularly prevalent in northern regions, have exacerbated the situation. Intense rainfall and adverse weather patterns have significantly hindered agricultural activities, thereby affecting the demand for fertilizers, including Ammonium Sulphate. Consequently, there has been an evident slowdown in fertilizer procurement interest. Additionally, farmers have exercised caution, postponing their purchasing decisions for fertilizers including Ammonium Sulphate until the eleventh hour, which may potentially distort the actual demand dynamics. However, it is noteworthy that manufacturing facilities within the region have maintained satisfactory operational levels during this period.

 Simultaneously, the international market has experienced a steady flow of cargoes of Ammonium Sulphate despite ongoing tensions in the Red Sea. Traders have shown resilience by adapting to alternative transportation routes, primarily utilizing road and air channels to ensure a consistent supply of Ammonium Sulphate. This adaptability has facilitated the continuity of supply chains despite external disruptions. Insights gathered from various market participants indicate a notable increase in the volume of road transport across borders with the UK and Netherlands. As of March 11th, the total export of agricultural products via road in March ranged between 130,000 and 170,000 tons, within the same timeframe.

Similarly, the Chinese Ammonium Sulphate market experienced a downturn due to declining Ammonia prices, resulting in reduced production costs and lower product prices. Despite stable supply and sufficient inventories, domestic daily output decreased in some regions while increasing in others. International fertilizer demand remained subdued due to Chinese export suspensions, leading to inventory accumulation domestically. Although domestic fertilizer demand is rising ahead of the wheat planting season, growth has been slower than expected, with minimal impact on Ammonium Sulphate prices.

According to analysis conducted by ChemAnalyst, it is anticipated that the Ammonium Sulphate market will undergo a downward trajectory in the upcoming months. This projection is primarily attributed to the decreasing prices of feedstock and a reduction in seasonal demand.