SunSirs: The Ammonium Sulfate Market Was Optimistic in 2025, and Exports Will Remain the Core Growth Driver in 2026

Price trends in 2025

According to data from SunSirs, the average market price of ammonium sulfate was 826 RMB/ton on January 1st and 1,046 RMB/ton on December 31st. The domestic ammonium sulfate market price increased by 26.61% throughout 2025. The highest price during the year was 1,343 RMB/ton on June 24th, and the lowest price was 826 RMB/ton on January 1st.

Market analysis for 2025

In 2025, the domestic ammonium sulfate market experienced an initial surge followed by a decline, resulting in volatile upward price movements.

The ammonium sulfate market in the first half of 2025 was mainly characterized by volatile upward trends. In January and February, ammonium sulfate prices rose. Downstream compound fertilizer companies increased their demand, and downstream granulation plants actively replenished their stocks, leading to increased market activity. The sharp increase in urea prices also benefited the domestic ammonium sulfate market. In March, ammonium sulfate prices fell. Domestic demand for ammonium sulfate was weak, new orders decreased, and downstream purchasing intentions were insufficient. Reduced international demand for ammonium sulfate added to the negative factors. In April, ammonium sulfate prices rose. Maintenance work at some caprolactam plants reduced market supply. Downstream granulation plants increased their purchasing activity, boosting market demand. In May, ammonium sulfate prices weakened and declined. Market demand was limited, and transactions were sluggish. In June, the ammonium sulfate market saw a significant surge, with an increase of over 20%. Due to geopolitical events, some countries suspended or reduced urea production. The reduction in global nitrogen fertilizer supply and the sharp increase in international urea prices indirectly benefited the ammonium sulfate market, leading to a significant increase in domestic ammonium sulfate prices.

In the second half of 2025, the ammonium sulfate market experienced an initial decline followed by a rebound. From July to September, ammonium sulfate prices continued to fall. The market was well-supplied, but downstream inquiries decreased, purchasing activity weakened, and market transactions were sluggish. The export market was also weak, putting pressure on manufacturers to move their products, resulting in a generally weak ammonium sulfate market. From October to November, ammonium sulfate prices rose. The operating rate of caprolactam plants decreased, leading to a reduction in the supply of caprolactam-grade ammonium sulfate. Manufacturers prioritized maintaining prices, pushing ammonium sulfate prices upward. In December, the ammonium sulfate market declined again. Market transactions were subdued, and downstream buyers replenished their stocks only as needed, showing resistance to high prices.

According to the data from SunSirs, the largest price increase for ammonium sulfate in 2025 occurred in June, with a rise of 20.97%. The largest price decrease occurred in December, with a drop of 10.79%.

Market Forecast for 2026

Supply Situation

In recent years, China's ammonium sulfate production capacity and output have maintained a growth trend. By 2025, the total ammonium sulfate production capacity reached approximately 30.5 million tons, a year-on-year increase of 12.17%. Total output reached 27.924 million tons in 2025 and is projected to increase to 34.622 million tons by 2027. This growth is mainly due to the commissioning of large-scale caprolactam plants and the rapid increase in byproduct capacity. From 2023 to 2025, approximately 34 new ammonium sulfate plants are planned in China, with a total capacity of 4.4 million tons per year, of which caprolactam-grade accounts for 88%.

Driven by expanding agricultural demand, growing industrial applications, and environmental policies, the global ammonium sulfate production market is expected to maintain steady growth, with developing countries experiencing even faster growth. China's ammonium sulfate production capacity and output are projected to continue increasing in 2026. The compound annual growth rate over the next five years is expected to be 4.40%, a slight slowdown compared to the past five years. Environmental policies and "dual carbon" goals will drive the consolidation of smaller producers, expanding the advantages of leading companies. Caprolactam by-products will become a major source of supply, and their share of production capacity is expected to further increase by 2030.

Export situation

From January to November 2025, China's total ammonium sulfate exports reached 19.36 million tons, an increase of 4.01 million tons compared to the same period last year, representing a year-on-year increase of 26.1%. The total export value was US$2.995 billion, a year-on-year increase of 31%.  The total annual export volume reached 21 million tons. From January to November 2025, the main export destinations for Chinese ammonium sulfate were Brazil, Vietnam, Myanmar, Indonesia, and Turkey. Exports were primarily directed towards South America and Southeast Asia. Brazil was the largest importer of Chinese ammonium sulfate, accounting for 36.62% of total exports.

China is a major global supplier of ammonium sulfate, with its market share and influence continuously increasing. Coupled with the continued expansion of China's ammonium sulfate production capacity, export volumes are expected to continue growing in 2026, although at a slightly slower pace than before. Due to sulfur deficiency in soils in the Americas, demand for ammonium sulfate is expected to continue rising, and Brazil is likely to remain the largest export destination. The maturation of granulation technology will also contribute to increased ammonium sulfate exports.

Demand situation

In 2025, China's demand for ammonium sulfate reached 10.564 million tons, with agricultural compound fertilizers and industrial applications being the main growth drivers. In the agricultural sector, which accounts for 65%-70% of demand, the demand for cash crops such as tobacco and tea grew at an average annual rate of 3.5%-4.2%. In the industrial sector, the share of demand increased from 22% to 30%, driven by strong demand from new energy batteries (lithium battery cathode materials) and rare earth mining.

In 2026, China's demand for ammonium sulfate is expected to grow steadily, driven primarily by the agricultural and industrial sectors.

Agricultural demand: Increased grain production is driving the demand for nitrogen fertilizers. Higher grain yields directly boost the demand for ammonium sulfate as a nitrogen fertilizer.

Industrial demand: Expanding applications across multiple industries. Increased demand for antibiotics and vitamins is driving the use of ammonium sulfate in the pharmaceutical sector, along with rising demand from new energy battery and rare earth mining industries.

Summary and Outlook

In summary, the overall market outlook for ammonium sulfate in 2025 was positive. Supply was abundant, demand was primarily driven by agriculture, and industrial applications were showing significant growth. Technologically, green production techniques and high-purity products were the trends. Regarding policies, environmental standards were becoming stricter, but agricultural subsidies were likely to continue.

The ammonium sulfate market is expected to remain optimistic in 2026. The market anticipates ample supply, with exports continuing to be the main driver of growth, although prices may fluctuate due to environmental policies. Ammonium sulfate production capacity is expected to continue growing, but at a slower pace, mainly influenced by the commissioning schedule of caprolactam plants. Leading companies will expand their advantages, while small and medium-sized enterprises will gain market share through technological upgrades. Overall, the ammonium sulfate market will shift from scale expansion to quality and efficiency, with exports remaining the core growth driver.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.