Ammonia: A Global Strategic Business Report
San Jose, California (Vocus) October 12, 2010
Ammonia, an essential feedstock for a wide range of downstream nitrogen based products, is one of the most common and voluminously produced inorganic chemicals worldwide. The largest share of ammonia is primarily used in the production and consumption of fertilizers, while industrial applications and others account for the remainder. Ammonia production increases at an annual growth rate of 2-3%, with China leading global production and capacity surplus. Growth in ammonia production is directly related to the demand for phosphate and nitrogen fertilizers, as nearly 90% of ammonia and ammonium derivatives are applied in mineral fertilizer production worldwide. The trio of China, US and Morocco are considered market leaders in the production of ammonium phosphate worldwide. International ammonia prices are highly dependent on natural gas prices, and move in tandem with the US market, more precisely with the natural gas prices in the US.
The end-use market of ammonia, particularly fertilizers is undergoing significant changes with the emergence of new markets such as biofuels and AdBlue abatement of NOx emissions. There has been a stupendous growth in biofuels production particularly bioethanol and biodiesel (first generation biofuels) in recent years. AdBlue (Aqueous Urea Solution 32.5%) is the other niche end-use market gaining prominence due to its capability in reduction of diesel/NOx emissions, a prime concern in the automobile industry. The need for complying with stringent environmental regulations drives demand for this urea solution. The market share of urea in ammonia-based fertilizer consumption was pegged at more than 50% in 2008, the largest in comparison to other nitrogen-based fertilizers.
The onset of worldwide financial crisis in 2008 and 2009 adversely affected the overall consumer purchasing power resulting in substantial decrease of fertilizer prices. The most noticeable price declines were for the MAP/DAP varieties, which fell by a huge 75% in 2009 as compared to 2008. Other fertilizers such as urea witnessed similar drop in prices. As a consequence of high inventory levels during the end of 2008, nitrogen and phosphate fertilizers declined, both in terms of volume and prices in 2009. Surplus supply of ammonia in markets of North America and Europe also contributed to low prices during the year. Production in developed markets, such as the US and Europe, has been relatively flat over the past few years with rising natural gas prices leading to numerous plant closures. The market demand and prices for ammonia however entered a revival phase in the year 2010. Future growth in terms of expansion of production capacity will be powered mainly from developing markets.
The Asia-Pacific region reigns over the other world markets as the single largest and fastest growing Ammonia market, as stated by the new market research report. Growth and demand of ammonia largely stems from China, where ammonia is finding increased application in NPK/NP production. Europe, driven by regions such as Russia, Ukraine, Croatia, Germany and other Eastern Europe countries is the second largest and fastest market for ammonia worldwide.
In terms of end-use segments, Fertilizers dominates the ammonia market demand, accounting for a major share. Carbamide (Urea) and Ammonium Phosphate are two significant fertilizer types holding sway over the market.
Main participants in the Ammonia market include Acron, Agrium Inc, BASF SE, CF Industries, Inc., Terra Industries, Inc., DSM Agro BV, Koch Nitrogen Company, Potash Corporation of Saskatchewan, Inc., Total S.A., The Mosaic Company and Yara International ASA.
The report titled “Ammonia: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of industry outlook, overview, market trends, trade, product overview, recent industry activity, and profiles of market players worldwide. Analysis and overview is presented for major geographic markets such as US, Canada, Japan, Europe, Asia-Pacific, Latin America and Rest of World. Market analytics are provided in terms of terms of Volume (Metric Tons) for product segments including Fertilizers (Carbamide (Urea), Ammonium Phosphate, Ammonium Nitrate, Ammonium Sulfate) and Others. The study presents historic data for an insight into market evolution over the period 2000 through 2006.
For more details about this comprehensive market research report, please visit – http://www.strategyr.com/Ammonia_Market_Report.asp
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world’s largest market research publishers. The company employs over 800 people worldwide and publishes more than 1200 full-scale research reports each year. Additionally, the company also offers thousands of smaller research products including company reports, market trend reports, and industry reports encompassing all major industries worldwide.
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