FAR EAST AND BALTIC COUNTRIES AMMONIUM SULFATE MARKET ANALYSIS

  Far East And Baltic Countries Ammonium Sulfate Market was valued at US$  1,422.8 Million in 2022, exhibiting a CAGR of 4.5%   in terms of revenue, over the forecast period (2023 to 2030) to reach US$ 2,027.2Million by 2030.  Ammoniums sulfate is a solid inorganic compound that is white in colour, and is composed of 24% sulfate ions and 21% nitrogen. It is mainly used as a fertilizer for alkaline soils as it helps to reduce the pH value. Ammoniums sulfate is produced by reacting sulphuric acid with hot ammonia. Animal feed, food processing, pharmaceutical, and textile dyeing are some of the major end users of the ammonium sulfate.

Far East and Baltic Countries Ammonium Sulfate Market- Impact of Coronavirus (Covid-19) Pandemic

The sudden emergence of the coronavirus is expected to have a significant impact on various sectors including the agriculture and fertilizer producing industries. The Covid-19 has caused shutdown or complete closure of the various fertilizer producing industries. Fertilizer plants across the globe are facing logistical constraints due to of road closures, unavailability of proper transportation system to make deliveries of finished products leading to building inventories, as well as a labour shortage at production plants.

Figure 1. Far East and Baltic Countries Ammonium Sulfate Market, By Production Process, 2022 

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 Far East and Baltic Countries Ammonium Sulfate Market - Drivers

• Growing Demand For Ammonium Sulfate as a Fertilizer for Alkaline Soil

Growing demand for ammonium sulfate as a fertilizer for alkaline soil is expected to drive the market growth. It promotes photosynthesis in plants, and also work as a building block. Growing demand for food due to increasing population in the Far East and Baltic countries is expected to propel the market growth. Thus, rising demand for fertilizer is expected to drive the market growth of ammoniums sulfate.For instance, In January 2023, Fertilizers containing ammonium sulphate will be made by Azersulfat LLC. The business intends to boost sulfuric acid and ammonium sulphate fertiliser affair to neutralize the high fertiliser request pricing.

Increasing Demand for Sulfur Nutrients for Various Crop Production

  Increasing demand for sulfur nutrients for various crop production is expected to drive the  market growth of ammonium sulfate. Sulfur content enhances protein synthesis, enzymes, vitamins, and amino acids. Moreover, it supports the overall growth of the crop such as corn, rice, potatoes, canola, wheat, alfalfa, and vegetables. Ammonium sulfate is considered an excellent source of Sulphur (24%) in the sulfate form that makes it easily absorbable by plants. For instance, In July 2019, the purchase of Arrmaz by Arkema, a manufacturer of specialised surfactants for infrastructure, mining, and crop nutrition, has been finalised. Arkema has made progress towards specialty chemicals with this accession, which is intended to ameliorate the company's product line.

Far East and Baltic Countries Ammonium Sulfate Market - Restraints

Low Content of Nitrogen in Ammonium Sulfate as compared to Urea and Ammonium Nitrate

Low content of nitrogen in ammonium sulfate as compared to urea and ammonium nitrate is expected to restrict the market growth of the ammonium sulfate. For instance, nitrogen content in ammonium sulfate is 21%, while that in urea and ammonium nitrate is 46.6% and 35% respectively.

Far East and Baltic Countries Ammonium Sulfate Market- Segmentation

On the basis of production process in 2022, the Caprolactam By-product segment accounted for the largest market share of 37% in terms of value. Caprolactam (CPL) is an organic compound with the formula (CH2)5C (O) NH. This colourless solid is a lactam (a cyclic amide) of caproic acid. Global demand for this compound is approximately five million tons per year, and the vast majority of it is used to make Nylon 6 filament, fiber, and plastics.

Figure 2. Far East and Baltic Countries Ammonium Sulfate Market, By Country, 2022

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 Far East and Baltic Countries Ammonium Sulfate Market- Opportunities

• Growing Demand for Ammonium Sulfate from the Pharmaceutical Industry

Growing demand for ammonium sulfate from the pharmaceutical industry is expected to provide lucrative opportunities for the market of ammonium sulfate. These are used during the production of preparation of vaccines and other medication, and this is projected to drive the market growth of the ammonium sulfate. Thus, the growing demand for ammonium sulfate from the pharmaceutical industry is expected to drive the market growth of the ammonium sulfate.

• High Production of Crops due to the Vast Area

High production of crops due to the vast area of agricultural land in Europe is expected to provide enormous market opportunities to the market of the Far East and Baltic countries ammonium sulfate.  According to the European Environment Agency (EEA), 39 of the total land area in the region was enthralled by agriculture and grasslands in 2017. Therefore, growing crop product in the European region is projected to drive the market growth of the ammonium sulfate.

Far East and Baltic Countries Ammonium Sulfate Market- Trends:

Increasing Use of Liquid Grade Ammonium Sulfate in the Water Treatment Increasing use of liquid grade ammonium sulfate in the water treatment industry is expected to be a major trend in the market. It is used as a stable and effective source of ammonia for chlorination. The market growth is also attributed to growing demand for water treatment due to  rising demand for water across the population. Moreover, increasing number of water treatment plant in the Far East and Baltic countries is also projected to drive the market growth.

 Far East and Baltic Countries Ammonium Sulfate Market- Country Insights

China dominated the Far East and Baltic Countries ammonium sulfate market in 2022 accounting for 55% in terms of value.

Indonesia is another important Far East and Baltic Countries ammonium sulfate market, that has many production facilities.

Far East and Baltic Countries Ammonium Sulfate Market- Key Developments

• In May 2023, China Petroleum & Chemical Corporation (HKG: 0386, "Sinopec") signed a key terms agreement with KazMunayGaz, the national operator of the oil and gas industry of Kazakhstan, for developing a polyethylene project in the Atyrau Region on May 18 in Xi'an, China. The agreement, signed during Kazakh President Kassym-Jomart Tokayev's visit to China, marks that Sinopec will participate in and push forward the project as a cooperative partner. The polyethylene project will be the largest natural gas and chemical project in the region, the investment decision of which is expected to be finalized in 2024, and when Sinopec formally joins the project in the future, all parties will sign an equity acquisition agreement and other legally binding documents of relevance.
• In March 2023, DOMO Chemicals, A leading manufacturer of finagled materials,  blazoned the ground- breaking for its new plant in Haiyan, Jiaxing, Zhejiang, China. The new factory will produce TECHNYLpolyamide- grounded grades, and is anticipated to be operation by end Q1 2024. It represents a significant investment of€ 14 million (100 million RMB) by DOMO Chemicals and covers a total area of 40,000 square meters.
• In Feb 2022, modernisation the Ammonia- 3 and Ammonia- 4 plants at Grodno Azot will bring product volumes up to2.1 thousand tons per day, according to the First Deputy General Director of Grodno Azot OJSC, Chief Engineer Sergei Silivonik

 Far East and Baltic Countries Ammonium Sulfate Market- Key Players

Major players operating in the Far East and Baltic Countries ammonium sulfate market include Koninklijke DSM N.V., JSC Kuibyshev Azot, UBE Industries, Ltd., Toray Industries, Inc., China Petrochemical Development Corporation, China Petroleum & Chemical Corporation (Sinopec Corp.), JSC Grodno Azot, Domo Chemicals, Grupa Azoty, Gujarat state Fertilizers & Chemicals Ltd

*Definition: Ammonium sulfate is an inorganic salt that is prepared by treating heated ammonia with sulfuric acid. It has high content of sulfur that makes it ideal for alkaline soil as it gets absorbed by plants easily. Food additives, flame retardants, purifying protein, and ammonium salts production such as ammonium persulfate is some of the other applications of ammoniums sulfate.