Ammonium Sulphate Prices Drop in the US as Weather Woes Persist, While Europe Sees Price Stability
- 12-Nov-2024 12:00 AM
- Journalist: Marcel Proust
Throughout October 2024, Ammonium Sulphate prices experienced a sustained downward trajectory, with the USA witnessing the most significant price declines. This price reduction was primarily driven by a notable weakening in demand across critical downstream markets, particularly within the fertilizer sector. Adverse weather conditions, such as droughts and storms, combined with broader market uncertainty, played a pivotal role in diminishing purchasing activities in both the USA and other affected regions. These unfavorable conditions for crop planting undermined confidence in the agricultural sector, leading to a reduction in fertilizer demand, which in turn curtailed the need for Ammonium Sulphate. In contrast, the European market experienced a period of price stagnation, where Ammonium Sulphate prices remained largely stable. Despite the global downturn, the European Ammonium Sulphate market's stability was underpinned by consistent demand from the fertilizer sector and a reliable flow of imports.
In the North American market, Ammonium Sulphate prices experienced a notable decline throughout October 2024, despite fluctuations in the price of Ammonia, its key feedstock. Although Ammonia prices remained elevated during the month, their impact on Ammonium Sulphate costs was relatively limited, suggesting that demand-side factors were the primary drivers of price movements. Market insights indicate that the price decline was heavily influenced by a combination of factors, including prolonged drought conditions and the aftermath of hurricanes in September. While intermittent precipitation provided some temporary relief, the overall market sentiment remained subdued. The October 15 drought map revealed that approximately 69% of the state was experiencing conditions ranging from abnormally dry to severe drought. These ongoing dry conditions, particularly in key agricultural regions, have significantly hindered the application of Ammonium Sulphate, despite some positive effects on the ongoing harvest. The uncertainty surrounding planting conditions, exacerbated by the continued drought, further weakened demand for fertilizers, including Ammonium Sulphate. As growers remained cautious in their purchasing decisions, the diminished demand from the agricultural sector contributed directly to the sustained downward pressure on Ammonium Sulphate prices across North America.
In the European market, Ammonium Sulphate prices remained stable throughout October 2024, supported by a balance between supply and demand. While international inquiries were limited due to expectations of further price declines, modest demand persisted from the downstream fertilizer market, driven by the forthcoming rice and cotton planting season in 2025. Regular shipments of Ammonium Sulphate from Algeria ensured adequate supply, preventing shortages. This steady demand and consistent supply helped maintain price stability in the region, despite broader global price declines.
According to ChemAnalyst, Ammonium Sulphate prices are forecasted to rise globally, driven by the expected surge in fertilizer demand for the upcoming winter planting season.