Metals Movers (Argus series within Argus Media feed)
Fertilizer Matters EP43: China’s Ammonium Chloride Market
Why It Matters
Ammonium chloride is becoming a key, cost‑effective nitrogen source for Southeast Asian agriculture, influencing fertilizer pricing and crop profitability across the region. Understanding China’s capacity growth and export trends helps buyers, traders, and policymakers anticipate supply risks and make informed procurement decisions in a market where affordability is critical.
Key Takeaways
- •China’s AC capacity reaches 21 Mt, production 19.5 Mt (2025).
- •Export volumes rose 63% to 1.58 Mt in 2024.
- •Southeast Asia drives demand due to cheap AC vs EMSO.
- •AC price $80/t vs EMSO $200/t creates substitution.
- •New Argus price assessment adds transparency to AC market.
Pulse Analysis
China remains the world’s dominant ammonium chloride (AC) producer, with total standard capacity climbing to roughly 21 million tonnes and actual output projected at 19.5 million tonnes in 2025. The bulk of this supply is a by‑product of soda‑ash manufacturing, especially in Hebei, Anhui, Henan, Jiangsu and Gansu provinces, where one tonne of soda ash yields an equivalent tonne of AC. Recent projects such as Yingcheng Singtu’s 0.7 Mt expansion and the Indonesia‑based Herbang joint venture illustrate how Chinese firms are scaling capacity both domestically and abroad.
The surge in capacity has generated a noticeable export surplus. In 2024, China shipped 1.58 million tonnes of AC—a 63 % year‑on‑year jump—primarily to Malaysia, Vietnam and Indonesia, and 2025 volumes are already tracking above 2.3 million tonnes. Southeast Asian buyers favor AC because it offers roughly 25 % nitrogen at a fraction of the cost of ammonium sulfate (EMSO), which was trading near $200 per tonne versus AC’s $80‑$95 range. The price gap, combined with AC’s suitability for oil‑palm and other hard‑crop plantations, fuels its substitution for EMSO despite the higher chlorine content.
Looking ahead, continued capacity growth and strong regional demand suggest AC exports will keep rising through 2026, though logistics could become a bottleneck due to China’s 60‑day customs inspection (CIQ) process. To mitigate uncertainty, Argus has introduced its first price assessment for AC in Southeast Asia, delivering a transparent benchmark for procurement, contract negotiations and risk management. As fertilizer affordability remains a priority for cost‑sensitive markets, ammonium chloride is set to stay a pivotal component of the nitrogen mix across the region.
Episode Description
Hear Argus’ essential analysis of what’s driving China’s ammonium chloride production expansion, the Chinese projects leading this growth, key export destinations, why demand is growing in Southeast Asia, product substitution from ammonium sulphate and the export outlook. We also introduce the new Argus Ammonium Chloride CFR Southeast Asia weekly price assessment.
Join Huijun Yao, Editor – Fertilizers and Dinise Chng, Senior Reporter – Fertilizers as they discuss these topics in the latest episode of Argus' Fertilizer Matters podcast series.
Key questions answered in this podcast:
What’s driving China’s growth in ammonium chloride production?
Which major Chinese projects will lead this production growth?
Will China’s expanding ammonium chloride capacity support more exports?
Why is Southeast Asia’s demand growing, and how is this influencing trade flows?
What impact is the ammonium chloride vs ammonium sulphate price gap having on buyers?
Will Chinese ammonium chloride exports continue to grow?
The need for a price benchmark and why CFR Southeast Asia Assessment
Why did Argus launch the Ammonium Chloride CFR Southeast Asia weekly price assessment, and how does it enhance price transparency?
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