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Ammonium nitrate Price Trend and Forecast

Ammonium nitrate is a white crystalline solid with the chemical formula NH4NO3. It is the nitrate salt of the ammonium cation that is highly soluble in water. Ammonium nitrate is mostly used in agriculture as a high-nitrogen fertilizer. Plus, it is used as an oxidizing agent in explosives. This product does not burn, but in contact with other combustible materials, it increases fire hazard and supports fire. So, it should be stored in a cool, dry and well-ventilated facility.

Ammonium nitrate market 


The global Ammonium nitrate market size was US$ 20 billion in 2021 and is expected to grow at a CAGR of 8.5% over the period 2021-2030.

The global Ammonium nitrate market is segmented by application (fertilizers, explosives and others), by End-users (agriculture, mining, civil construction and others), and by region (North America, Europe, Asia-Pacific, and Africa). Due to the extensive utilization of ammonium nitrate in the field of agriculture, it accounted for more than 70% of the global market share in 2020. Forecasts indicate that this trend is likely to persist over the period 2021-2030.

Ammonium nitrate market growth drivers 


The Ammonium nitrate market has witnessed significant growth in recent years, driven by several factors:

Increasing demand in agriculture 

Ammonium nitrate is widely used as a fertilizer in agriculture. Due to its high nitrogen content, it is necessary for plant growth. The growing population and the need to enhance food production are driving the demand for agricultural fertilizers, and ammonium nitrate.

Mining industry 

Ammonium nitrate is a key component in the production of explosives used in the mining industry for activities such as quarrying and construction. As mining activities continue to expand globally, the demand for explosives, and consequently ammonium nitrate, is expected to grow.

Infrastructure and construction projects 

Ammonium nitrate is used in the construction industry for controlled blasting and demolition purposes. As infrastructure development and construction projects increase worldwide, the demand for ammonium nitrate as an explosive agent is likely to rise.

Industrial applications 

Ammonium nitrate is used in various industrial applications, including chemical manufacturing and the production of speciality explosives. As industrial activities continue to grow, the demand for ammonium nitrate in these sectors is expected to increase.

Technological advancements 

Research and development efforts are focused on improving the efficiency and performance of ammonium nitrate-based fertilizers and explosives. Innovations such as slow-release fertilizers, as well as new formulations for explosives, contribute to market growth by offering enhanced products with different benefits.

Ammonium nitrate price trend 


The increasing population all over the globe, rising construction activities along with the growing defence sector are the major factors that lead to the growth of the ammonium nitrate market in the forecast period of 2021 to 2030. The increased consumption of explosives and increasing demand for good quality food also play a role in the market’s growth. Furthermore, the diversity of the usage of ammonium nitrate in the end-user industries will create lucrative opportunities for the growth of the ammonium nitrate market in the forecast period of 2021 to 2030.

Several factors can influence the price of ammonium nitrate. Raw chemical materials used in the production of ammonium nitrate, such as ammonia and nitric acid, can have a significant impact on its price. Fluctuations in the prices of these key ingredients, which are influenced by factors like supply and demand can directly affect the overall cost of producing ammonium nitrate and, subsequently, its price.

Plus, the production of ammonium nitrate requires a substantial amount of energy. Changes in energy prices can impact the manufacturing costs and, consequently the price of ammonium nitrate. On the other hand, the presence of competition among ammonium nitrate producers can influence pricing. Intense competition can lower profit margins, while limited competition may give producers more pricing power. These factors can vary over time, resulting in price fluctuations in the ammonium nitrate market.

Ammonium nitrate prices have increased slightly in 2022, due to the local demand and growing raw material costs. While supply was insufficient to fulfil the entire demand. It is expected that regarding the demand and the supply of raw materials, the prices will increase in the expected period of 2021 to 2030.

It is anticipated that agriculture continue to have the highest share in the Ammonium nitrate market in the upcoming years.

Our experts in ArChem monitor and analyze various aspects of the global Ammonium nitrate market. They analyze various segments and provide an analysis of the market performance in the long term. This would be useful for our customers to plan their future investments, understand the cost dynamics, and gain awareness about the behaviour of competitors across the globe.

FAQ 


What is the price of Ammonium nitrate in the market? 

Depending on your orders, Prices of raw chemical materials are different. For more information about Ammonium nitrate price, please contact our technical sales team in ArChem.

What is Ammonium nitrate? 

Ammonium nitrate is a chemical compound with the formula NH4NO3. It is commonly used as a fertilizer and as an ingredient in explosive mixtures.

What is the size of the Ammonium nitrate market?

The market size of Ammonium nitrate was US$ 20 billion in 2021 and is expected to reach US$ 42 billion by 2030.

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