Ammonia Prices

Ammonia Prices December 2023

The price of ammonia in North America experienced bullish growth during Q4 2023 due to higher natural gas costs and strong domestic demand for winter planting. The prices declined sharply in December on account of surplus supply in the regional market, reaching 760 USD/MT in the USA.

The price trend for ammonia in China fluctuated in Q4 2023 and experienced maximum changes due to lower fertilizer exports, limited material availability, and changes in feedstock price. High demand from India initially drove prices up, but the decision of China to curtail exports in November led to a price drop by December, which resulted in the price reaching 500 USD/MT in China, as international demand waned amidst government export restrictions.

The European ammonia market witnessed a bullish trend in Q4 2023, reaching 650 USD/MT, which was initiated by the production halt of Yara, which complicated the supply chain and increased spot demand. Following the Chinese export restriction, demand from outside stayed high but declined in December, accompanied by unfavorable weather and commercial uncertainties due to rebel attacks in the Red Sea.

Ammonia Price Trend, Market Analysis, and News

IMARC’s newly published report, titled “Ammonia Pricing Report 2024: Price Trend, Chart, Market Analysis, News, Demand, Historical and Forecast Data,” offers an in-depth analysis of ammonia pricing, covering an analysis of global and regional market trends and the critical factors driving these price movements.

It encompasses an in-depth review of spot price of ammonia at major ports, a breakdown of prices including Ex Works, FOB, and CIF, alongside a region-wise dissection of ammonia price trend across North America, Europe, Asia Pacific, Latin America, the Middle East and Africa.

The report examines the elements influencing ammonia price fluctuations, such as changes in raw material costs, supply-demand dynamics, geopolitical factors, and industry-specific developments. Additionally, it integrates the latest market news, providing stakeholders with up-to-date information on market shifts, regulatory changes, and technological advancements, thereby offering a comprehensive overview that aids in strategic decision-making and forecasting.

Ammonia Market Analysis

The global ammonia market size reached US$ 79.6 Billion in 2023. By 2032, IMARC Group expects the market to reach US$ 120.1 Billion, at a projected CAGR of 4.50% during 2023-2032.

• Innovation in the ammonia manufacturing process is being driven by stricter environmental regulations that aim to reduce greenhouse gas emissions and environmental pollutants. This is encouraging the development of more eco-friendly technology for the production of fertilizers and refining processes for ammonia synthesis. For instance, by surpassing traditional methods and achieving a 50% Faradaic efficiency in lab testing, GenCell, an Israel-based company, has advanced the development of a green ammonia production process. In an effort to obtain a competitive advantage, GenCell is considering patenting the method in order to reduce production costs.
• Showa Denko K.K., a Japanese chemical company, achieved a breakthrough in producing low-carbon ammonia from recycled plastics at its Kawasaki Plant, emitting over 80% less greenhouse gases compared to traditional methods using fossil fuels. This achievement, validated by an ISO-certified calculation method accredited by Japan Life Cycle Assessment Facilitation Centre, establishes SDK as a pioneer in environment-friendly ammonia production.
• Ammonia is an essential part of nitrogen-based fertilizers, such as urea, ammonium sulfate, and ammonium nitrate, which are vital for plant growth and development. According to the International Energy Agency (IEA), around 70% of ammonia is used as a fertilizer only.
• The increasing employment of ammonia in various industrial processes is bolstering the market growth. It serves as a building block for plastics and polymers, such as nylon, polyurethane, and melamine. These materials are widely employed in the manufacture of automotive parts, textiles, packaging, and construction materials.
• A positive market outlook is created by the increasing use of ammonia in water treatment processes to control pH levels and remove impurities like chlorine in wastewater treatment plants. Ammonia disinfectants are used in the production of chloramines, which prevent the growth of bacteria and maintain the quality of the water throughout the distribution network. For example, the Washington Aqueduct resumed using chloramine, which is a combination of chlorine and ammonia, for disinfecting drinking water in the District of Columbia and surrounding areas. Chloramine offers long-lasting protection as water travels through the distribution system to the taps of consumers while reducing levels of disinfection byproducts.
• The growing utilization of ammonia as refrigerants in large-scale air conditioning units and industrial refrigeration systems due to its effective cooling qualities is positively influencing the market.

Ammonia News

The report covers the latest developments, updates, and trends impacting the global ammonia market, providing stakeholders with timely and relevant information. This segment covers a wide array of news items, including the inauguration of new production facilities, advancements in ammonia production technologies, strategic market expansions by key industry players, and significant mergers and acquisitions that shape the ammonia price trend.

Latest developments in the Ammonia industry:

• In May 2023, Nutrien Ltd. declared that it would be building the biggest clean ammonia factory in Geismar, Louisiana. The project would have an annual capacity of 1.2 million metric tons and will reduce CO₂ emissions by 90%. Nutrien aspires to be a leader in the production of clean, low-carbon ammonia.
• In November 2023, Adani Power, India's largest private power generator, initiated a green ammonia combustion pilot project at its Mundra plant. The project involves co-firing up to 20% green ammonia in a conventional coal-fired unit, reducing CO2 emissions. This initiative, supported by IHI and Kowa-Japan, aims to achieve economic parity and expand to other Adani Power units.

Product Description

Ammonia refers to a colorless gas that is made of hydrogen and nitrogen with a characteristic pungent smell. It is synthesized through the Haber process, which lays hydrogen and nitrogen molecules over a catalyst under high pressure and temperature. It is available in different forms, including gaseous ammonia or dry ammonia gas, liquid ammonia, liquor ammonia fortis, and laboratory bench reagents, each offering distinct properties.

Ammonia is widely adopted as a fertilizer to promote effective plant growth and improve crop yields without disrupting the soil conditions. It is employed in the production of ammonium nitrate and urea, which are essential for carrying out modern farming practices. It is used in the formulation of various cleaning agents as it is capable of dissolving grease and grime effortlessly.

It is often incorporated into hair dye formulations to allow the proper penetration of color molecules, resulting in vibrant and long-lasting color. Additionally, ammonia and its derivatives are used in the production of pharmaceuticals, including antibiotics, vitamins, and other medications.

Regional Coverage

The report provides a detailed analysis of the ammonia market across different regions, each with unique pricing dynamics influenced by localized market conditions, supply chain intricacies, and geopolitical factors. This includes price trends, price forecast and supply and demand trends for each region, along with spot prices by major ports. The report also provides coverage of ex-works, FOB, and CIF prices, as well as the key factors influencing the ammonia price trend. 

Global Ammonia Price

The report offers a holistic view of the global ammonia pricing trends in the form of ammonia price charts, reflecting the worldwide interplay of supply-demand balances, international trade policies, and overarching economic factors that shape the market on a macro level. This comprehensive analysis not only highlights current price of ammonia but also provides insights into historical price trends, enabling stakeholders to understand past fluctuations and their underlying causes.

The report also delves into price forecast models, projecting future price movements based on a variety of indicators such as expected changes in supply chain dynamics, anticipated policy shifts, and emerging market trends. By examining these factors, the report equips industry participants with the necessary tools to make informed strategic decisions, manage risks, and capitalize on market opportunities. Furthermore, it includes a detailed ammonia demand analysis, breaking down regional variations and identifying key drivers specific to each geographic market, thus offering a nuanced understanding of the global pricing landscape.

Europe Ammonia Price

The European ammonia market exhibited an upward trend in Q4 2023, but it later witnessed a downturn. The brief production stoppage of Yara caused supply dynamics to be disturbed, which increased spot demand and widened the gap in the European market. Furthermore, in the face of commercial uncertainty brought on by rebel raids in the Red Sea, traders chose to use alternate trade routes, which resulted in a rise in port inventories throughout Europe.

This analysis can be extended to include detailed ammonia price information for a comprehensive list of countries.

North America Ammonia Price

In North America, the ammonia market prices offered a positive outlook initially due to strong domestic market demand for ammonia and its derivatives, particularly with the approaching winter planting season. Additionally, when the Chinese government held fertilizer supplies, overseas buyers, particularly Indian companies, became active in the North American market. However, as a result of an oversupply of material on the North American market, prices collapsed in December 2023.

Specific ammonia historical data within the United States and Canada can also be provided.

Middle East and Africa Ammonia Price

The Middle East and Africa (MEA) witnessed a decrease in ammonia prices during December as a result of manufacturers lowering their production rates. In addition, difficulties including limited supply, equipment breakdowns, and partial sales stoppages impacted the Middle Eastern market in November 2023. Moreover, the business uncertainty brought on by rebel activity in the Red Sea led traders to choose other trading routes.

In addition to region-wise data, information on ammonia prices for countries can also be provided.

Asia Pacific Ammonia Price

Ammonia pricing in the Asia Pacific region remained unstable due to decreased fertilizer shipments from China, restricted market availability, and changes in feedstock prices. Strong domestic and international demand, especially from India during the Rabi crop season, initially caused Chinese ammonia prices to soar. However, in November, China banned fertilizer exports to keep domestic prices stable. This reduced demand abroad, and by December, Chinese ammonia prices had also dropped, closing the demand-supply imbalance.

This ammonia price analysis can be expanded to include a comprehensive list of countries within the region.

Latin America Ammonia Price

The analysis of ammonia prices in Latin America provides a detailed overview, reflecting the unique market dynamics in the region influenced by economic policies, industrial growth, and trade frameworks.

This comprehensive review can be extended to include specific countries within the region.

Report Coverage

Key Benefits for Stakeholders:

• IMARC’s report presents a detailed analysis of ammonia pricing, covering global and regional trends, spot prices at key ports, and a breakdown of Ex Works, FOB, and CIF prices.
• The study examines factors affecting ammonia price trend, including raw material costs, supply-demand shifts, geopolitical impacts, and industry developments, offering insights for informed decision-making.
• The competitive landscape review equips stakeholders with crucial insights into the latest market news, regulatory changes, and technological advancements, ensuring a well-rounded, strategic overview for forecasting and planning.
• IMARC offers various subscription options, including monthly, quarterly, and biannual updates, allowing clients to stay informed with the latest market trends, ongoing developments, and comprehensive market insights. The ammonia price charts ensure our clients remain at the forefront of the industry.