In May 2023, the Ammonium Sulphate market in Europe experienced a continuous price decline, resulting in negative market sentiments. Key factors contributing to the decline included weak demand from the fertilizer industry, falling prices of essential raw material Ammonia, reduced procurement orders from international buyers, and a narrow gap between demand and supply. However, the prices of Ammonium Sulphate showed an inclining trend in the USA market, backed by a shortfall in production and a shift towards an alternative product Ammonium Thiosulphate in the major importing country Canada.

Price fluctuations have plagued the European market for a considerable period. This fluctuation is majorly due to the potential threat of recession in multiple European economies and prolonged regional conflicts. The prices of Ammonium Sulphate witnessed a fall of around 3% this month in Germany, backed by declining prices of the feedstock Ammonia. Factors such as reduced energy prices and weak demand from domestic and international markets also contributed to the dip in prices. Furthermore, the ongoing war in the region has led to economic sanctions on multiple countries leading to growing inflation. Exports of Ammonium Sulphate from Germany to other European regions traded weak with deteriorating market fundamentals.

Additionally, as per data recorded by the German Federal statistical office, the Consumer Prices Index declined by 0.1% in May 2023, and inflation in the country was recorded at 6.1%.

On the other hand, prices of Ammonium Sulphate showed an upward trajectory in the USA market in May 2023 with a rise of 3.1%. However, the prices of feedstock Ammonia continued to decline during this period. A shortfall in the production of Ammonium Sulphate was the major driving factor behind the increased prices of Ammonium Sulphate in the USA. Moreover, disruptions in the supply chain and the widened demand-supply gap and shift towards alternative fertilizer Ammonium Thiosulphate in major importing country Canada further influenced the prevailing price trend.

Data from the US Bureau of Statistics revealed a marginal rise of 0.1% in the Consumer Price Index for May 2023. In addition, the Industrial Production Index reached 103.1, as reported by the Federal Reserve of Economic Data.

It is anticipated that the prices of Ammonium Sulphate will rise in the German and US market in the coming months. With the cropping season around the corner, the demand from the fertilizer industry is expected to become robust. Further increased demand from international markets may also influence the prices. However, the feedstock Ammonia and Natural Gas market may remain unstable soon, influencing the prices of Ammonium Sulphate in the European and North American markets.