Ammonium Sulfate Market Optimistic in 2025, Exports Remain Core Growth Driver in 2026

January 5th, News

Price Trends for 2025

According to the data, the average market price of ammonium sulfate on January 1st was 826 CNY/ton, and on December 31st, it was 1046 CNY/ton. In 2025, the market price of ammonium sulfate in China increased by 26.61% for the whole year. The highest value within the year was 1343 CNY/ton on June 24th, and the lowest value was 826 CNY/ton on January 1st.

2025 Market Analysis

In 2025, the Chinese ammonium sulfate market experienced a fluctuating upward trend, initially rising and then falling.

Market Forecast After 2026

Supply Situation

In recent years, China's ammonium sulfate production capacity and output have maintained a growing trend. By 2025, the total capacity of ammonium sulfate is expected to reach around 30.5 million tons, with a year-on-year growth of 12.17%. The total output in 2025 will reach 27.924 million tons, and it will increase to 34.622 million tons by 2027. The growth is mainly due to the commissioning of large-capacity caprolactam plants and the rapid growth of by-product capacity. From 2023 to 2025, there are approximately 34 planned ammonium sulfate facilities in China, with a total capacity of 4.4 million tons per year, of which 88% is for caprolactam grade.

Export Situation

In January to November 2025, China's total export volume of ammonium sulfate reached 19.36 million tons, an increase of 4.01 million tons compared to the same period last year, with a year-on-year growth of 26.1%. The total export value was $2.995 billion, an increase of 31% year-on-year. It is expected that the total export volume for the whole year will reach 21 million tons. From January to November 2025, the main export destinations for China's ammonium sulfate were Brazil, Vietnam, Myanmar, Indonesia, and Turkey. The export direction was mainly towards South America and Southeast Asia. The largest export volume of ammonium sulfate from China went to Brazil, accounting for 36.62% of the total export volume.

China is a major global supplier of ammonium sulfate, with its market share and influence continuously growing. With the ongoing release of China's ammonium sulfate production capacity, it is expected that the export volume in 2026 will continue to grow, although at a slower pace than before. The Americas have a soil sulfur deficiency issue, and the demand for ammonium sulfate is expected to continue to increase, with Brazil likely to remain the largest export destination. The maturation of granulation technology will also boost the export of ammonium sulfate.

Demand Situation

In 2025, China's ammonium sulfate demand is expected to reach 10,564,000 tons, with agricultural compound fertilizers and industrial applications being the main growth points. In the agricultural sector: it accounts for 65%~70%, with the annual demand for economic crops such as tobacco and tea growing by 3.5%~4.2%. In the industrial sector: the share will increase from 22% to 30%, driven by strong demand in new energy batteries (lithium battery cathode materials) and rare earth mining.

In 2026, the demand for ammonium sulfate in China is expected to grow steadily, with agriculture and industry being the main drivers.

Agricultural Demand: Increased grain production drives demand for nitrogen fertilizers. As grain yields rise, the demand for ammonium sulfate as a nitrogen fertilizer is directly boosted.

Industrial demand: Expansion of applications across multiple industries. The increase in demand for antibiotic and vitamin production has driven the use of ammonium sulfate in the pharmaceutical sector, as well as an increase in demand from new energy batteries and rare earth mining.

Summary and Outlook

In summary, the overall outlook for the ammonium sulfate market in 2025 is positive. Supply is ample, demand is primarily driven by agriculture, and industrial applications are experiencing significant growth. Technologically, green production techniques and high-purity products are emerging as key trends. On the policy front, environmental standards are becoming increasingly stringent, though agricultural subsidies may continue.

The ammonium sulfate market is expected to remain optimistic in 2026. The market anticipates a loose supply situation, with exports continuing to be the main driver of growth; however, prices may fluctuate due to the impact of environmental policies. Ammonium sulfate production capacity is projected to keep growing, though at a slower pace, primarily influenced by the timing of commissioning of caprolactam plants. Leading companies will continue to strengthen their competitive advantages, while small and medium-sized enterprises will seize market opportunities through technological upgrades. Overall, the ammonium sulfate market will shift from scale expansion to a focus on quality and efficiency, with exports remaining the core driver of growth.