In 2023, Myanmar will import more ammonium sulphate.
Myanmar (Burma) is on track to import more ammonium sulphate (amsul) in 2023 as its use for agricultural fertilizer and as a raw ingredient in rare earths mining increases.
Myanmar normally purchases amsul from China, with Chinese shipments projected to rise further in the following year. According to the most recent GTT data, China’s amsul shipments to Myanmar were 303,400t in January-February, up from 29,000t the previous year.
Because amsul prices have been falling since October 2021, Myanmar’s fertilizer importers are likely to have purchased more amsul in the first quarter of this year. This was a timely replacement for higher-priced urea purchases and in tighter supply from China.
However, the main reason for Myanmar’s significant increase in amsul imports is its application in the country’s rare earths mining business. Amsul is a raw element used in the rare earths mining business, which is inextricably linked to the worldwide electric vehicle (EV) market. With the global EV sector projected to continue to expand in the next years, the demand for rare earth ore supply produced through mining may continue to rise. This could increase demand for amsul by increasing production needs in Myanmar’s rare earths sector.
Steel-grade amsul is frequently used in the mining process by rare earth importers because caprolactam-grade amsul is of higher quality for agricultural use and is usually more expensive. However, steel-grade amsul was priced more competitively in the first quarter of this year due to local demand in China. Caprolactam-grade amsul had lower export demand and was perceived as more economical by purchasers, prompting Myanmar importers to acquire caprolactam-grade amsul instead.
Because of the impending monsoon season, which impedes rare earths mining operations, Myanmar’s demand for amsul has been slightly lower in recent weeks. However, demand from this industry is expected to increase up for the rest of the year, supporting amsul imports. (Source)
