Increasing Production of Ammonium Sulphate to Provide Profitable Opportunities for Manufacturers in the Emerging Regions

Ammonium sulphate, a water-soluble salt is a crystalline and odorless solid. Owing to the ever-increasing demand for fertilizers and the need for better solutions to enhance gardening and agriculture, the usability of ammonium sulphate has increased tremendously. From its use as a nitrogenous fertilizer for the alkaline soil to a food additive post approval from the United States Food and Grade Administration (FDA), ammonium sulphate has found its applicability in the food industry predominantly. The ammonium sulphate market is expected to witness major growth opportunities in the future owing to its attributes including less nitrogen content in the ammonium sulphate salt.

Owing to the ammonium sulphate salt being a high sulphur nutrient and providing a great yield in the agricultural products, the agricultural sector has been showcasing demand for ammonium sulphate which is expected to further nurture the ammonium sulphate market in the forthcoming years. Moreover, the increasing supply of the source of ammonium sulphate is emerging nations are expected to trigger the growth in production and supply of ammonium sulphate. Regions including Europe and the countries such as China and the Far East and Baltic nations are seen projecting greater demand for ammonium sulphate. The various production processes of ammonium sulphate are being adopted on a large scale which is expected to boost the production of the salt and contribute to the profit earned by the market players.

New Production Plants for Ammonium Sulphate to help Reinforce the Demand Growth of Ammonium Sulphate

With the intention to cut import costs and become self-sufficient when it comes to the demand for ammonium sulphate, there has been a new plan prepared for a production plant for ammonium sulphate. In the regions such as South Africa, where ammonium sulphate has been imported owing to its application in several sectors, the government has recognized the need for the development of the production plant for ammonium sulphate. The Bikita district in Zimbabwe, South Africa is planning to boost their ammonium sulphate production to ensure that the region is self-sufficient for catering to the demand for ammonium sulphate.

The plan of this production plant introduced by the government is expected to effectively save nearly 50 million dollars on an annual basis for their expense on water purification chemicals. The domestic production of ammonium sulphate in the region could help the country contribute to the economy and further create job opportunities. Furthermore, Zimbabwe Government’s is seen taking efforts to strengthen their agricultural sector. With their focus on providing crop subsidies to scaling the production, the demand for seeds, pesticides, fertilizers is expected to rise in the country. Production opportunities such as these with the support from government are expected to foster the profits gained by the manufacturers and create increased revenues for the ammonium sulphate market.

Eastern European region to Showcase Increased Production of Ammonium Sulphate

The need for ammonium sulphate has triggered the establishment of new production lines and plants to ensure sufficient production of ammonium sulphate. The production of ammonium sulphate has been proliferated even in the Eastern European region in the country Ukraine. From the beginning of the year 2018, Ukraine has showcased increased production of fertilizers and ammonia products such as ammonium nitrate and ammonium sulphate. With over a 9 percent rise in the production of ammonium sulphate alone, the Ukraine market is expected to grow significantly in the forthcoming years.

Since Ukraine increased the production of ammonium sulphate, the Ukrainian ammonia supply has registered over 65 percent of total export volume. The ammonium sulphate business in such regions is further expected to reach greater heights in the nearing future. With the increased production of ammonium sulphate in the European region, the ammonium sulphate market players could find greater opportunities in this region.

Government to Release Withheld Subsidy on Ammonium Sulphate

While the Gujarat State Fertilizers & Chemicals (GSFC) announced the Indian Government’s agreement over the subsidy on ammonium sulphate, the company witnessed a rise on the stock market. These incidences highlight the market dynamics achieved by the market players that are dealing with ammonium sulphate.

The ammonium sulphate market owing to such a rise in production and ever-increasing demand, would showcase probable growth in the future decades

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About the Author

Nikhil Kaitwade

With over 8 years of experience in market research and consulting industry, Nikhil has worked on more than 250 research assignments pertaining to chemicals, materials and energy sector. He has worked directly with about 35 reputed companies as lead consultant for plant expansion, product positioning, capacity factor analysis, new market/segment exploration, export market opportunity evaluation and sourcing strategies.

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