North America

In the fourth quarter of 2023, the North American Ammonium Sulphate market faced several challenges that impacted prices. Firstly, there was an oversupply of Ammonium Sulphate in the market, exacerbated by delayed exports and high freight charges. 

This surplus availability led to a narrowing gap between demand and supply, resulting in a decline in prices. Further, the conclusion of the peak fertilizer season in the United States and subdued demand from international markets, particularly Brazil, further contributed to the downward pressure on prices. Another factor influencing prices was the bottleneck in the Panama Canal, which caused delays in shipments and accumulation of inventories within the country. However, despite these challenges, the demand for Ammonium Sulphate remained firm in the domestic fertilizer sector. Furthermore, some shipping companies are opting to bypass the Suez Canal due to concerns about potential rebel attacks, choosing alternative trade routes instead. 

The limitations at the Panama Canal have compelled certain shippers to reroute exports, including Ammonium Sulphate, through the Suez Canal to access Asian markets. If the constraints at the Suez Canal persist, it may become increasingly challenging for the US to export Ammonium Sulphate, potentially resulting in an oversupply and subsequent reduction in prices. As a consequence of delayed shipments to the international market, there has been an accumulation of Ammonium Sulphate inventories within the country. The confluence of these factors has contributed to the stabilization of Ammonium Sulphate prices.

APAC

The fourth quarter of 2023 was challenging for the Ammonium Sulphate market in the APAC region. The market experienced a significant decline in prices, with South Korea being the most affected country. The main factors contributing to this downturn were the abundant availability of the material, persistent weak demand from the Asian region, and a decline in feedstock prices. After China’s National Development and Reform Commission (NDRC) has continued to halt exports of fertilizers there is surplus availability of material in the market. Further, with the autumn season sweeping away demand for Ammonium Nitrate from the end-user fertilizer market remained subdued.  Additionally, manufacturing activity in South Korea showed signs of stabilization after a prolonged contraction period, leading to a slight increase in production and a mild reduction in new orders. However, the overall demand for Ammonium Sulphate remained low, and the market was characterized by high supply levels. However, later the prices increased by a significant margin. Increasing the price of essential feedstock Ammonia prompted higher production costs thus exerting upward cost pressure on Ammonium Sulphate prices. During this period, there was an absence in imports from the European Ammonium Sulphate market. The redirection of merchant ships from the Red Sea, prompted by the imminent threat of attacks from Houthi militants off Yemen, resulted in a notable surge in freight charges as many shippers altered their shipping routes. However, demand from the significant downstream fertilizer industry remained subdued, as the peak planting season had concluded.

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Europe

The Ammonium Sulphate market in Europe during the fourth quarter of 2023 witnessed several factors that led to the declining price of Ammonium Sulphate in the market. Firstly, demand from the fertilizer industry remained subdued due to the completion of the peak planting season. Further, unfavorable weather conditions, including storm Ciaran and heavy rainfall, hindered the planting of winter crops, further dampening the demand for Ammonium Sulphate. Furthermore, the availability of the product in the global market was high, contributing to a surplus and putting downward pressure on prices. As December approached there was a major disturbance in a crucial trade route. The recent attacks on Red Sea trade by Yemeni rebels raised concerns about the safety of maritime traffic in the region, leading to disruptions in Red Sea trade that are expected to substantially impact global Ammonium Sulphate supplies. Shippers also imposed extra fees amid the trade disruption in the Red Sea, making Asian consumers hesitant to make bulk purchases. This has consequently led to a surge in inventories within the European market. The interplay of these factors prompted towards narrowed gap between demand and supply thus supporting the current price dip. 

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