Western Demand Fuels Ammonium Sulphate Price Increases, While Asia Holds Steady Amid Seasonal Lulls
- 17-Feb-2025 5:30 PM
- Journalist: Li Hua
The global Ammonium Sulphate market witnessed notable price fluctuations during the first week of February 2025, with contrasting trends observed across various regions. While prices in the Western markets experienced a modest uptick, reflecting supply-demand imbalances and regional factors, the Asian market, particularly in China, saw stabilization in pricing during the same period. In the Western region, the price increases can be attributed to a combination of tightening supply conditions and strong international demand. This upward momentum in Ammonium Sulphate prices was largely driven by supply-side constraints, geopolitical factors, and strategic stockpiling ahead of seasonal agricultural requirements. Conversely, in the Asian markets, Ammonium Sulphate prices remained largely stable.
In China, the price of Ammonium Sulphate remained stable throughout the first week of February, mirroring the trend from the previous week. The domestic consumption of Ammonium Sulphate was subdued, primarily due to the Lunar New Year festivities, which traditionally slow industrial activities. Despite a decline in the price of its key feedstock, Ammonia, the impact on Ammonium Sulphate pricing was minimal. The market remained oversupplied, and reduced demand during this season led to a lack of price movement.
In Europe, the price of Ammonium Sulphate experienced a modest increase during the review period, primarily driven by robust international demand, with a notable surge from the United States. The U.S. demand spike was largely a consequence of the tariff imposition on Canadian imports, which created a ripple effect that tightened the supply-demand balance in the European market. Furthermore, the looming imposition of additional tariffs on fertilizers imported from Russia and Belarus, slated to take effect in mid-2025, has introduced an element of market uncertainty. This, in turn, prompted European buyers to take proactive measures to secure adequate supplies ahead of the crucial spring planting season.
In addition to these trade dynamics, favourable weather conditions across much of Europe have enhanced agricultural prospects, further supporting the demand for Ammonium Sulphate. With expectations of favourable crop yields, many European buyers have accelerated their purchasing activities, leading to stockpiling as a precautionary measure against potential supply disruptions. These combined factors have contributed to the observed price increase, as market participants have sought to align their procurement strategies with the anticipated demand surge during the upcoming planting season.
Similarly, In North America, a slight price increase was observed due to persistent freezing weather, which disrupted manufacturing and logistics, leading to a supply shortage. Production interruptions at key facilities, coupled with logistical challenges, resulted in a reduced availability of Ammonium Sulphate. Despite weaker-than-expected demand, the weather-induced production limitations and currency fluctuations contributed to upward price pressure.
As per ChemAnalyst, it is anticipated that the prices of Ammonium Sulphate may continue to surge in the forthcoming weeks owing to proactive stockpiling of fertilizers for the forthcoming spring planting seas.