Weekly Review of the International Ammonium Sulfate Market

Europe

Buying interest in granular ammonium sulfate remains strong, resulting in increased transactions across regions. Demand for high-quality ammonium sulfate dominates, especially for fast shipment. The price was also approved by the buyer, but some challenges arose in terms of delivery time. On the other hand, demand for standard ammonium sulfate lags behind granular ammonium sulfate, with several transactions delayed, putting pressure on quote levels. Prices for standard caprolactam-grade ammonium sulfate have been assessed as slightly lower this week, with southern European markets still receiving lower offers compared to other regions. The price of granular ammonium sulfate is stable at US$237-317/ton FOB Northwest Europe. According to shipping data, the Saga Falcon from China discharged a total of 20,000 tons of ammonium sulfate at two separate ports of Bristol and London in the United Kingdom on February 1 and 15.

Russia

There is a shortage of ammonium sulfate on the market, as caprolactam granules ammonium sulfate producers have sold their production by mid-April, while companies producing extruded granules from crystalline ammonium sulfate are short of raw materials, most of which are sent to Vologda Apatit area. In February, the cost of standard coking grade ammonium sulfate purchased as raw material increased by 15%, reaching 12,000 rubles/ton CPT Belgorod region. Batches of raw materials for shipment in March have been offered at a price of 13,800 rubles/ton. Schekinoazot has been offering standard ammonium sulfate for April delivery at 17,000 rubles/ton cpt in the central federal region, and granules for April delivery in central Russia at 19,000-19,500 rubles/ton cpt and in the southern regions at 19,700-20,200 rubles/ton. Sold at CPT price. Belgorod Mineral Fertilizer Plant provides bulk granular ammonium sulfate at an EXW price of 18,500 rubles/ton, while the EXW price in January was 16,800-17,000 rupees/ton. Compacted fertilizer purchased from the production base in the Rostov region, EXW price is 18,500 rubles/ton.

China

According to the latest quotation, the FOB standard ammonium sulfate price in China last week was between US$141-147/ton. There is a transaction of 6,000 tons of standard ammonium sulfate, priced at US$145-150/ton FOB China, shipped to the Philippines in March. Some demand has increased in Central America, with suppliers receiving inquiries for 30,000 tonnes of standard ammonium sulfate to be shipped to Mexico in March. But most suppliers kept export offer levels stable after the holidays, waiting for demand to recover. Domestic ammonium sulfate prices have mostly increased, thanks to strong demand for granular ammonium sulfate, which purchased caprolactam-grade ammonium sulfate as raw material for compaction. Strong demand from the rare earth industry has kept domestic prices stable. The price of MMA grade ammonium sulfate has stabilized this week at around US$130/ton, FOB China. There was a transaction to sell 2,000 tons of MMA grade ammonium sulfate in a container to a trader, which was equivalent to a low FOB price of US$130/ton shipped to Southeast Asia in March. Granular ammonium sulfate prices have stabilized at US$150 to US$160/ton FOB this week. Domestic extruded pellet plants are reportedly processing around 100,000 tonnes of pellet ammonium sulfate orders, driving rising demand for the raw material, according to market participants. But weak demand from Brazil has slightly dampened sentiment and largely kept export offers stable. There is a deal for 5,000 tons of extruded pellets, with an FOB price of US$150-155/ton, shipped to Brazil in March. Some small batches of extruded granular ammonium sulfate totaling 2,000-3,000 tonnes were also shipped in March at $160/ton FOB. A southern producer is understood to have sold approximately 1,500 tonnes of premium bulk granular ammonium sulfate for shipment to Asia in March at $185/t fob, but this was excluded from the assessment as it did not represent general trade flow. 54,000 tons of ammonium sulfate Sun Vil II shipped from China is expected to arrive in Lagos, Nigeria on March 7.

Thailand

An importer received a CFR quotation of US$175-185/ton of granular sodium sulfate.

Indonesia

An importer received a CFR quotation of US$170/ton of standard ammonium sulfate.

Malaysia

The importer received a quotation of mma grade ammonium sulfate at CFR155/ton/Klang, and a quotation of caprolactam grade standard ammonium sulfate at CFR165-170/ton/Klang.

Brazil

This week, market transactions for extruded granular ammonium sulfate in Brazil were not active as the market is approaching the off-season for nitrogen fertilizer purchases on the market. For standard ammonium sulfate, no news of actual transactions was received.

USA

Prices rose this week as the market tightens ahead of spring and warehouses fill up. The median increase in the Corn Belt was $10/ton, as the lower end of the range rose to $330/ton from $310/ton the previous week. It was noted that prices in the Western Corn Belt rose to $330-375/ton due to an apparent shortage in the high-quality market. Buyers in the South West experienced a market squeeze as major producers experienced problems earlier in the quarter. Last week, barge prices in the Gulf rose to $295-320/standard FOB. Most trading was at the lower end of the range, with three barges trading at $300/standard FOB on February 21. Barges were quoted at $320/standard FOB for April, although no deal was confirmed. U.S. chemicals producer Advansix expects to increase ammonium sulfate production amid rising demand and favorable agricultural conditions. Advansix said it plans to increase U.S. granular ammonium sulfate production by approximately 200,000 metric tons per year by 2027. The company expects to invest $75 million in the project. The company also expects to receive some funding through the U.S. Department of Agricultures fertilizer production expansion program.

Source of the article: Oilchem.net