Global Ammonium Sulphate Market Witnesses Pessimistic Trends Amid Muted Demand
Global Ammonium Sulphate Market Witnesses Pessimistic Trends Amid Muted Demand

Global Ammonium Sulphate Market Witnesses Pessimistic Trends Amid Muted Demand

  • 26-Mar-2025 6:00 PM
  • Journalist: Patrick Knight

Global Ammonium Sulphate market experienced pessimistic trend during the first half of March 2025. The prices remained largely stable across North America, meanwhile slight fluctuations in the European and Indian market were witnessed. Primarily consistent demand of Ammonium Sulphate with no new bids or enquiries from the downstream was responsible for the current pessimism prevailing in the Ammonium Sulphate market in both India and USA. However, a modest uptick in the European market was observed.

In the Indian market, Ammonium Sulphate prices declined during the first half of March 2025. Market activity has remained slower than expected as many buyers held off on new purchases, expecting prices to decline further.  Further, concluding Rabi planting season and inadequate weather conditions have led to restricted buying activity for various fertilizers including Ammonium Sulphate. As reported by the Indian Fertilizer Association crops in about 11,300 acres across 64 Zones in 13 districts of Telangana have been damaged due to heavy rains and hailstorm in the last few days, making consumers cautious of making bulk purchases.  This cautious approach in Ammonium Sulphate buying sentiments has allowed suppliers to maintain sufficient inventory levels, meeting end-user needs without strain. Further, Logistical challenges on the supply side persist; however, the muted demand has eased pressure on inventory management, contributing to a balanced supply-demand dynamic. The alignment of these factors underscores the current market softness and supports the observed price decline.

Further, in the North American market the Ammonium Sulphate prices experienced a phase of stagnancy influenced by balanced demand and supply gap. Purchasing activity from the downstream fertilizer sector remained steady, with no new bids or inquiries recorded during the review period. This slowdown in consumer sentiments was fueled by adverse weather conditions across the region, followed by heavy precipitation and flooding, disrupting agricultural activities.

On the other hand, a slight increase in prices in the European market was observed.  This price surge is attributed to a series of factors including widened disparity between demand and supply and the strengthening of the U.S. dollar against Euro has increased the import cost of nitrogen-based fertilizers including Ammonium Sulphate for major consuming European regions, adding to upward price pressure.  Further, on the supply side, shortage of Ammonium Sulphate market was observed during the review period owing to constrained production activities. To add fuel to this, the delayed influx of imported cargo was also reported amid sudden port closure, strike and labor shortage across the region. Meanwhile, in terms of demand, Ammonium Sulphate purchasing activities remained modest across both domestic and international markets. The upcoming planting season for key crops such as wheat, sunflower seed, sorghum, and rice, has made the traders to actively stock up inventories to ensure sufficient supply for the forthcoming agricultural needs. This proactive stocking has provided some support to overall Ammonium Sulphate demand.

As per ChemAnalyst anticipation, the prices of Ammonium Sulphate may continue to decline in the forthcoming days owing to faded seasonal demand and declining feedstock prices.

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