Ammonia Price Insights: Ammonia Price Trend and Forecast

Ammonia Price Insights: Ammonia Price Trend and Forecast

Ammonia Market Overview: Ammonia Production Cost, Market Players, Key Developments

Ammonia (NH3) is among the most frequently produced industrial chemical. It is a colourless gas with a very distinct smell. It is a colourless gas composed of nitrogen and hydrogen and is the simplest stable compound among the elements acting as a feedstock for producing several commercially essential nitrogen compounds. It is vital for carrying out several biological processes and also functions as a precursor for amino acid and nucleotide synthesis. It can also be naturally produced from decomposing organic matter like animals, plants, and animal wastes. It is directly used in the soil in farm fields for lawns, crops etc. It is also added in many industrial and household cleaners that contain ammonia.

Ammonia has several applications, primarily its use as a fertilizer in crops. In household cleaners, it is mixed with water for cleaning stainless steel and glass. In the food and beverage sector, it is employed as an antimicrobial agent, as well as in the fermentation industry as a pH adjuster. Other applications of the product include as a fuel for rocket engines and in textile industries for manufacturing synthetic fibre like rayon and nylon.

Ammonia Production

Ammonia Production from Natural Gas: The process of ammonia production takes place using the Haber Process. During the procedure, hydrogen is derived from natural gas and mixed with nitrogen while the iron is present. At first, H2O is created from natural gas using desulphurization. Next, it gets transported to a primary reformer, where methane is reacted in order to form hydrogen. The gas is later chilled and sent to a secondary reformer, where ammonia is formed by adding nitrogen.

Ammonia Production from Heavy Oils: Ammonia is produced by the partial oxidation method. The method uses heavy feedstocks like coal and heavy fuel oil. The partial oxidation process includes a Gasification chamber, an Air Separation Unit (ASU), and soot and sulphur removal. The Gasification yields hydrogen from hydrocarbon and oxygen. The ASU produces pure nitrogen and oxygen. This process presents impurities like soot and sulphur, which are later removed.

Key Players

The market has several key players contributing to the industry expansion through measures like mergers, investments, acquisitions, and expansion plans. The primary key players are listed below:

  • CSBP Limited
  • Koch Fertilizer, LLC
  • Yara International ASA
  • CF Industries Holdings, Inc.

The Current Ammonia Price Trend and Forecast

North America 

Prices for Ammonia in the U.S. regional market fell recently as a result of frail demand from the downstream sector after the spring agricultural season ended, where direct ammonia application stayed steady. Yet, Nitrogen feedstock prices witnessed small changes supported by the upstream fluctuation in Natural gas. Slow and sluggish queries indicated low pricing sentiments. The price decline hinted that manufacturer of fertilizer are increasing output as a comeback to the monetary incentive of increased pricing. The top reasons for low pricing are growing stockpiles as a result of production and supply chain problems related to the pandemic and Black Sea conflict-related trade flow realignments.


The Asia Pacific ammonia prices portrayed mixed market sentiments due to slight market dynamics changes. The manufacturing process has been impacted by the effect on the coal market in China, which is employed as a key feedstock material for the nation’s Ammonia production. The sharp decline in ammonia prices in July was furthered by the frail U.S. dollar exchange rates along with the global economy’s slowdown. Physical restraints in the supply chain ranging from mine to manufacturing facilities and issues in logistics have further contributed to the continued rise. There has been a halt in truck movements in the domestic market of China. But sentiments rose as China suffered from a horrible heatwave that might have a major impact on its economy.


Presently, prices of ammonia increasingly rose owing to the worldwide scarcity and growing demand in the global market. The price rise came as a result of high ammonia demand in the world after the suspension of imports. Furthermore, declining imports from Russia contributed to a severe scarcity compelled by supply reductions from 50% to 35%. Moreover, surging prices of natural gas have hindered the European market’s production processes. As Europe bears the brunt of depleting Russian supply, SKW shut down its German factory, as well as Norway’s Yara, among the globe’s most significant makers of fertilizer, curtailed production of Ammonia in Europe. Germany’s BASF also shut down its ammonia manufacturing.

The procurement of ammonia is crucial across several industry verticals, giving rise to the need for Procurement Resource where our leading industry experts will cater to all your business needs. Pricing reports, production processes and the prices incurred, the cost modelling of products, industry reports, pre-feasibility reports, and so on is how the market experts at Procurement Resource aim to help businesses today.

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