The fertilizers market has been experiencing a downturn for a prolonged period. Hence, the prices of Ammonium Sulphate continue to decline in both North American and European regions during July 2023. The key factors attributing to the decline were the declining price of feedstock Ammonia and depreciating demand from the end-user market amidst the global economic slowdown. Further, fluctuating upstream Natural Gas and Crude Oil prices also impacted the prevailing price trend.

Ammonium Sulphate prices observed their lowest point in the USA market this year during July 2023. The prices of Ammonium Sulphate declined by a margin of 3.7% from the previous month in July 2023. Depreciating demand from the regional market since the country is suffering from severe drought conditions and grasshopper attacks further influenced the current prevailing price trend of Ammonium Sulphate. Further, fewer imports to other countries due to the low water level in the Mississippi River caused by high temperature led to stockpiled inventories in the country. This, coupled with sluggish demand, paved the way for narrowed demand-supply fundamentals.

Similarly, pessimistic market sentiments for Ammonium Sulphate prevail in the European market. Due to declined demand, the prices declined by a significant margin of 5% this month. The unhealthy demand for Ammonium Sulphate was caused due to hiked interest rates and the global economic slowdown. As per data from the German Federal Statistical Office, a decline of 5% in energy prices was observed. This further impacted the prevailing price trend of the product in the region.

Furthermore, compound fertilizer plants were operating at a healthy rate, and a surplus amount of material was available in the market. This, coupled with depreciating demand, paved the way for narrowed demand-supply fundamentals in the region. Thus, the traders were forced to keep their prices of Ammonium Sulphate on the lower side.

Additionally, as indicated by the Production Price Index of the country for chemicals and allied products declined by 2.5% in July and is expected to decline further in the forthcoming months.

However, a potential shift in the prices of Ammonium Sulphate in the forthcoming months in both North American and European regions is expected. Increasing prices of feedstock Ammonia and reviving demand from the end-user fertilizer market may lead to price alleviation of Ammonium Sulphate in the forthcoming months in both regions. Further, the withdrawal of the Russian Federation from the year-long grain deal may lead to a surge in fertilizer prices in European countries and consequently may give rise to food inflation globally.