Ammonium Sulphate Market Faces Price Stabilization Amidst Rising Ammonia Costs in Early 2025
- 24-Jan-2025 3:30 PM
- Journalist: Yage Kwon
The global Ammonium Sulphate market experienced price stagnation in the first half of January 2025. Despite a rising trend in the price of the key feedstock, Ammonia, its impact on Ammonium Sulphate pricing remained limited. This was due to a combination of factors, including moderately low demand from major end-user fertilizer markets, global trade uncertainties, and unfavourable weather conditions. These elements collectively contributed to the stabilization of Ammonium Sulphate prices after a prolonged period of increases, indicating a more balanced market condition.
In the North American market, Ammonium Sulphate prices remained stagnant, reflecting similar trends to the global market. Domestic fertilizer demand, particularly for Ammonium Sulphate, saw a decline as suppliers introduced winter fill and spring prepay prices. This pricing adjustment led to a more cautious approach among buyers, many of whom decided to delay significant purchases in anticipation of more favourable pricing terms in the coming months. The current pricing environment, in combination with the timing of seasonal purchasing decisions, resulted in a decrease in buying interest, as stakeholders opted to wait for potential price adjustments or changes in market conditions before committing to large-scale purchases.
In the Asian market, Ammonium Sulphate prices remained largely stable, following a period of minor fluctuations. China, as the most impacted region, saw moderate demand throughout the week, although there were signs of gradual improvement in buyer interest. Historically, purchasing activity in the region has been dominated by contractual agreements, with key players such as Fujian Tianchen and Hinghsun releasing tenders for over 5,000 tons in late December. However, as the new season approaches, restocking efforts have intensified, putting additional pressure on the market. Suppliers are working to ensure inventory levels are sufficient for upcoming demand, which has slightly influenced market dynamics.
On the international front, demand for Ammonium Sulphate has remained modest, with countries such as Turkey and several Asian nations showing some interest in Ammonium Sulphate. While the market appears relatively balanced, the combination of restocking activities and moderate demand from key international buyers has kept price fluctuations minimal in the short term. This stable trend reflects cautious optimism as market participants wait for further indications of seasonal demand patterns. As the year progresses, market conditions are expected to evolve in response to these factors, and the overall outlook remains one of measured anticipation for potential price movements based on supply-demand shifts.
ChemAnalyst forecasts a global rise in Ammonium Sulphate prices due to increased fertilizer demand for the upcoming winter planting season. The surge in agricultural activity, combined with supply constraints, is expected to drive prices higher. Tight supply and strong demand will significantly impact market dynamics, pushing prices of Ammonium Sulphate upward in the near term.