The global ammonium sulphate market witnessed major volatility during the first half of 2026 due to geopolitical tensions, supply chain disruptions, and changing global trade policies. The escalation of the USA–Israel–Iran conflict on 28 February 2026 and the temporary disruption of shipping through the Strait of Hormuz significantly affected global fertilizer logistics and feedstock costs.
Ammonium Sulphate is a widely used nitrogen-based fertilizer valued for its high purity, stable nutrient release, and sulfur content. It improves soil fertility, enhances crop protein synthesis, and supports healthy plant growth.
As nitrogen and phosphate fertilizer prices surged, farmers across South America, North America, and Australia increasingly shifted toward ammonium sulphate as a cost-effective alternative to urea and DAP. This substitution demand strongly supported global ammonium sulphate prices.
At the same time, India strengthened its fertilizer procurement strategy ahead of the Kharif season. Indian Potash Limited (IPL) issued a large import tender for 300,000 metric tonnes of Caprolactam Grade ammonium sulphate to secure domestic supply and control price volatility.
Impact of the USA–Israel–Iran Conflict
The Middle East conflict became the key driver of fertilizer market volatility in 2026. The disruption of the Strait of Hormuz, which handles a major share of global fertilizer and energy trade, caused severe shipping delays and increased freight and insurance costs.
Crude oil prices surged sharply, with Brent crude rising above $109/barrel by May 2026. Higher energy prices directly increased production costs for ammonia, sulfur, and other fertilizer feedstocks, supporting higher ammonium sulphate prices globally.
China Ammonium Sulphate Price Trend
Before the escalation of the USA–Israel–Iran conflict in late February 2026, China’s ammonium sulphate market remained relatively stable, with Standard Caprolactam Grade prices assessed at USD 175–185/MT and Granular Caprolactam Grade at USD 185–195/MT.
However, following the outbreak of the conflict and the subsequent disruption in global fertilizer logistics and feedstock supply chains, prices surged sharply by late March 2026. Standard Caprolactam Grade ammonium sulphate increased to USD 230–240/MT, while Granular Caprolactam Grade rose to USD 240–250/MT.
Overall, both grades recorded a substantial price increase of approximately 25%–35%, primarily driven by rising freight costs, elevated sulfur and ammonia feedstock prices, and stronger global demand amid tightening fertilizer supply conditions.
China’s Export Policy and Market Impact
To stabilize domestic fertilizer prices during its spring planting season, China imposed export restrictions on several fertilizers, including NPK fertilizers and ammonium chloride. However, ammonium sulphate remained exempt because it is mainly produced as a by-product of caprolactam and coke manufacturing.
This exemption allowed China to remain one of the few active ammonium sulphate exporters during the global supply disruption, supporting international availability.
Market Outlook 2026–2027
The future ammonium sulphate market will largely depend on geopolitical developments and energy prices.
- If the Strait of Hormuz reopens quickly, prices may gradually ease due to improved fertilizer and feedstock supply.
- If geopolitical tensions continue, ammonium sulphate prices are expected to remain firm due to elevated ammonia, sulfur, and freight costs.
- Under an extended conflict scenario, global fertilizer shortages could intensify, potentially pushing Chinese FOB ammonium sulphate prices above $340–365/MT.
Overall, the ammonium sulphate market is expected to remain highly sensitive to geopolitical risks, energy prices, and global fertilizer trade policies throughout 2026.
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