Throughout August 2023, the Ammonium Sulphate market witnessed a notable uptick in price in both North American and European regions. This price escalation can be attributed to several factors, including a revision in demand for fertilizers, including Ammonium Sulphate from international markets, disturbance in the supply chain, and heightened freight charges. Further, feedstock Anhydrous Ammonia witnessed an upward trajectory in the European region; however, it was relatively stable in the North American region during the same period.

In the United States, Ammonium Sulphate prices followed an upward trend, majorly driven by reviving demand from the international market, particularly India, since consumers are actively stocking up for the forthcoming winter planting season. However, the domestic demand outlook remained moderate during the same period. Notably, Minnesota grappled with severe drought conditions during this timeframe, leading to a noticeable decrease in procurement orders for Ammonium Sulphate. Conversely, the southern region, particularly South Dakota, saw a slight uptick in the demand for fertilizers, including Ammonium Sulphate, due to increased rainfall by the end of August 2023. This weather-related phenomenon played a part in the modest increase in demand for Ammonium Sulphate.

However, in Europe, there has been a notable rise in the prices of various fertilizers, including Ammonium Sulphate and its feedstock Ammonia. This price increase can primarily be attributed to the improved performance of the international market. In August 2023, European producers entered the U.S. market for Nitrogenous fertilizers with enthusiasm, driven by higher local prices and the need to secure fertilizers for the upcoming planting season in September and October 2023. Nevertheless, as the month drew to a close, Russian producers also became actively involved in the markets of the United Kingdom and France, expanding their sales efforts for the upcoming months.

Additionally, specific disruptive incidents had repercussions on the fertilizer industry. A fire at a fertilizer storage facility in Moscow and the resulting damage to 60,000 tons of fertilizer at the Odesa port in late July caused disruptions in the fertilizer supply chain, affecting products like Ammonium Sulphate in the European market. These occurrences affected the price increases observed in the European fertilizer market.

According to ChemAnalyst, the prices of Ammonium Sulphate are projected to rise even more due to the growing costs of its feedstock, Ammonia, and strong demand from end-user fertilizer industries. Furthermore, fluctuations in upstream natural gas and crude oil prices will also contribute to the upward movement in prices.