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July 24th, 2024

Ammonia Prices Trend | Pricing | Database | Index | News | Chart

North America

In the first quarter of 2024, the North American Ammonia market experienced significant negative sentiment, resulting in a notable 20.6% drop in prices.

Fluctuating natural gas prices and declining domestic demand contributed to this downward trend. Although international demand remained steady, domestic consumption was weak due to unfavorable weather conditions impacting crop planting. Major producers, including the Yara/BASF JV plant in Texas and U.S. Nitrogen LLC in Tennessee, faced shutdowns due to freezing weather, though these did not substantially affect prices. Additional shutdowns occurred at OCI Beaumont LLC in Texas and LSB Industries Inc in Cherokee, Alabama.

The market also faced logistical disruptions on the Mississippi River, which hindered barge resupply until mid-March, causing delayed shipments and increased port inventories. Persistent adverse weather conditions across the country further dampened producer enthusiasm due to concerns about crop threats.

Fluctuating demand from major importing countries like Brazil, influenced by the approaching planting season and exacerbated by El Niño-induced weather conditions, added to the market's volatility. These factors collectively contributed to the subdued performance and pricing dynamics in the North American Ammonia market throughout Q1 2024.

Get Real Time Prices for Ammonia : https://www.chemanalyst.com/Pricing-data/ammonia-37

APAC

In Q1 2024, the Ammonia market in the APAC region experienced significant volatility, driven by various market dynamics. Prices declined in the initial two months due to ample material availability and subdued seasonal demand. Favorable weather conditions and increased domestic production enhanced supplies, while sluggish demand from the fertilizer industry post-peak planting season further impacted prices.

Moreover, international demand, especially from Asia, was constrained by Chinese government restrictions on fertilizer exports until 2024. By late February 2024, ammonia shortages emerged in the Chinese market, driven by equipment malfunctions and sales stoppages at production facilities, particularly in northern China. Operational challenges disrupted manufacturing processes and delayed ammonia deliveries, exacerbating supply shortages. Additionally, environmental regulations in Shandong province imposed further constraints on production, reducing ammonia output.

Despite these supply challenges, domestic demand saw a modest uptick as preparations for the upcoming wheat and barley planting season commenced, leading to a marginal 0.8% increase in prices in March 2024.

Europe

The European Ammonia market faced a challenging first quarter in 2024, characterized by a substantial 17.3% decline in prices in Russia. This decline was primarily due to reduced demand from the downstream fertilizer sector, compounded by an oversupply of ammonia and muted overall demand. Market sentiments were further dampened by trade uncertainties and unfavorable weather conditions, particularly in Russia.

Weather patterns across Europe varied significantly during the quarter, with cold spells in the northern regions, excessive rainfall in central areas, and dryness in the Mediterranean. These weather conditions influenced agricultural activities and fertilizer demand, further contributing to the subdued market conditions. Despite these challenges, the temporary maintenance shutdown of the Novomoskovskiy Azot (Eurochem Group) plant had minimal impact on prices.

Ongoing farmers' protests, fueled by rising energy prices, significantly reduced buying enthusiasm in the fertilizer sector. These protests added further pressure on the already subdued demand. In response to inventory pressures, traders employed various strategies, including adjusting fertilizer prices, including ammonia. Despite these efforts, prices continued to decline throughout the quarter.

Get Real Time Prices for Ammonia : https://www.chemanalyst.com/Pricing-data/ammonia-37

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