Malaysia turns to ammonium chloride as amsul costs rise

Ammonium chloride is a by-product of the Solvay process where ammonia, CO₂, and sodium chloride are combined to produce soda ash. Since AC has a relatively high nitrogen content of around 25%, it is often used as a substitute for other nitrogen fertilizers such as amsul, which has a lower nitrogen content of 21%.

AC fertilizers are sold at lower prices compared to amsul, mainly because its chlorine content is highly acidic and could potentially damage the soil upon repeated application. As Malaysian importers are more price-sensitive, they have consistently opted to apply AC to their crops as a cheaper nitrogen source and as an alternative to amsul. Standard AC offers to southeast Asia were high (US$90/t cfr in the week to 15 August), while Argus Media assessed standard caprolactam-grade amsul at US$185 - 190/t cfr southeast Asia in the same week.

AC imports to Malaysia in January-June were stable from the previous year at 354 000 t, according to the latest Global Trade Tracker data. China is the main AC supplier to Malaysia, accounting for 353 300 t.

But amsul imports to Malaysia fell by 25% on the year to 331 000 t in January-June. Deliveries from China slipped by 38% on the year to 238 000 t, while imports from Japan and Taiwan rose slightly to 33 700 t and 30 100 t respectively.

Standard caprolactam-grade amsul prices in January-June in 2025 have been higher at US$169/t cfr on an average midpoint basis, compared to US$154/t cfr in the same period in 2024, according to Argus Media’s data. The higher prices could have discouraged importers from readily purchasing large volumes of amsul, leading them to adopt a hand-to-mouth purchasing strategy.

At current prices, AC costs approximately US$386/t on a $/t nitrogen basis, while amsul costs around US$893/t. Amsul is twice as expensive compared to AC on a pure nutrient basis, which has encouraged Malaysian importers to make the switch to AC. AC is mainly used on oil palm plantations, because the crop is hardier and more resistant to damage from repeated applications of AC.

Malaysian importers will likely continue to procure more AC this year because it is comparatively more affordable. But an ongoing 60-day customs inspection approval process for Chinese AC exports could mean importers must secure cargoes earlier to ensure timely arrival for application.

Article originally written by Dinise Chng. Find the original article here.

Read the article online at: https://www.worldfertilizer.com/nitrogen/21082025/malaysia-turns-to-ammonium-chloride-as-amsul-costs-rise/