Ammonium Nitrate (AN)
The chemical compound ammonium nitrate, the nitrate salt of ammonium, has the chemical formula NH4NO3, simplified to N2H4O3. It is a nitrogen fertilizer and contains 33-34.5% N.
The product is widely used in Europe, Russia and Latin America. As noted by The Fertiliser Institute of North America, the product was the first solid nitrogen fertilizer produced on a large scale.
Ammonium nitrate is primarily produced through the neutralization reaction between ammonia (NH3) and nitric acid (HNO3). This reaction yields aqueous ammonium nitrate, which can be concentrated and crystallized for commercial use. Due to its explosive potential, the production, storage, and transportation of ammonium nitrate are subject to stringent regulations in many countries to mitigate the risk of accidents.
The product is normally provided in prilled form, containing 33.5% nitrogen. It is highly soluble in water, which makes it suitable for use in liquid fertilizers. Stabilised Ammonium Nitrate contains between 31-33% nitrogen. As highlighted by Yara, a major nitrogen fertilizer producer, nitrate is easily absorbed by plants, and unlike urea, it is immediately available as a nutrient.
In 2021, global production of AN was around 48m. tonnes with seaborne trade just 15% of this figure. This is because most of the main producing regions serve local demand. Russia is by far the largest producer with around 12m. tonnes of nitrate produced each year. Over half of this product is typically committed offshore, primarily to Africa and Latin America.
European production is also sizeable, although most product remains on the continent. High gas prices from mid-2021 through end-2023 had a major impact on operating rates in the region. Some producers, such as those in the UK, shuttered some facilities permanently while operating rates at others have recovered since gas prices have eased.
Through the Profercy Nitrogen Service, Profercy provides expert market analysis of global ammonium nitrate markets. This includes weekly price assessments for all major pricing points, such as:
- AN Baltic $pt fob bulk
- AN Black Sea $pt fob bulk
- AN France €pt deld bulk
- AN UK fot £pt bagged
- CAN Germany €pt cif bulk
Full price history going back several years is available to subscribers via the Profercy Hub.