Ammonium Sulphate Prices Rise in the USA, but Fall in Europe due to Varying Demand
In May 2023, the European market for Ammonium Sulphate experienced a continuous decline in prices, leading to negative market sentiments. Several factors contributed to this decline, including weak demand from the fertilizer industry, decreasing prices of the essential raw material Ammonia, reduced procurement orders from international buyers, and a narrow gap between supply and demand. However, in the USA market, the prices of Ammonium Sulphate showed an upward trend due to a production shortfall and a shift towards an alternative product called Ammonium Thiosulphate in Canada, a major importing country.
The European market has been plagued by price fluctuations for a significant period. These fluctuations are primarily due to the potential threat of recession in multiple European economies and ongoing regional conflicts. The prices of Ammonium Sulphate saw a decline of approximately 3% this month in Germany, driven by falling Ammonia prices. Reduced energy prices and weak demand from domestic and international markets also contributed to the price dip. Additionally, the ongoing war in the region has resulted in economic sanctions on multiple countries, leading to increasing inflation. Exports of Ammonium Sulphate from Germany to other European regions have been weak, reflecting deteriorating market fundamentals.
Furthermore, data from the German Federal Statistical Office shows that the Consumer Prices Index declined by 0.1% in May 2023, and the country’s inflation rate stood at 6.1%.
On the other hand, Ammonium Sulphate prices in the USA market followed an upward trajectory in May 2023, with a rise of 3.1%. However, the prices of Ammonia, the feedstock for Ammonium Sulphate, continued to decline during this period. The main driver behind the increased prices of Ammonium Sulphate in the USA was a production shortfall. Additionally, disruptions in the supply chain, a widening demand-supply gap, and a shift towards the alternative fertilizer Ammonium Thiosulphate in Canada, a major importing country, further influenced the prevailing price trend.
It is expected that the prices of Ammonium Sulphate will rise in the German and US markets in the coming months. With the cropping season approaching, demand from the fertilizer industry is projected to become robust. Increased demand from international markets may also impact prices. However, the markets for feedstock Ammonia and Natural Gas may remain unstable, which could influence the prices of Ammonium Sulphate in the European and North American markets.
