Industrial and Caustic Potash: A Global Strategic Business Report
San Jose, CA (Vocus/PRWEB) January 06, 2011
Potassium is the seventh most extensively available element in the earth’s crust and plays a vital role as fertilizer in the food grain value chain. There is however greater need to develop and cultivate agricultural land, which in turn is expected to boost overall demand for Potash. The global potash industry is highly concentrated with top seven producers accounting for over 85% of the world potash production capacity. Canada dominates the global fertilizer industry as one of the largest worldwide supplier, contributing over 30% of total potash output in 2009. Russia, Belarus, Germany, China and Israel are some of the other significant potash producers in the world. The agriculture-oriented economies of Asia and Latin America are identified as the fastest growing markets for potash, particularly in use as fertilizers. Increased disposable incomes in these regions led to higher purchasing power of individuals and greater demand for better quality food products. Chinese imports of potash increased at stupendous rates in the last few years, along with Indonesia, India, Vietnam, Malaysia, Thailand and Brazil. In contrast, demand in the mature and saturated North American and European markets is likely to emanate from non-agricultural sectors, such as computer & TV monitors, crystal & ceramics and industrial among others.
The dominance of BRIC (Brazil, Russia, India and China) markets continued in the year 2008 with the countries accounting for a major 45% share in the global potash demand. Russia was the second largest mine producer of potash worldwide accounting for about 14.4% of the total potash production in 2009, a decline from the share of 19.2% in 2008. Company majors such as Uralkali/Belaruskali of Russia/Belarus enjoy a leading position in all of these fast growing markets. As mineral fertilizer companies showed promising results during the past couple of years, it is predicted that Russian and Belarusian companies hold the capability to transform themselves into world leaders in potassium trade. Robust growth for fertilizers is expected in future, as farmers in these countries increasingly adopt western styles and effective fertilization methods. Demand for potash as fertilizer grew by enormous volumes in Asia, so much so that the region is today the largest consumer of potash worldwide. Prices of fertilizers globally reached an all-time high during 2008 mainly driven by the surge in crop prices. Key factor driving the demand during the period was the positive economic growth in rapidly developing countries.
World production and trade of potash in the years 2008 and 2009 was severely affected as the demand collapsed due to global economic downturn. The recession resulted in contraction of fertilizer consumption, particularly for phosphate and potassium. There was a decline in potash production levels by 10 million tons in 2009 Vis-à-vis 2008, with traditional market leaders Canada, Russia, Belarus, Germany and Israel among others cutting down production capacities. The global market for fertilizers, which had enjoyed healthy growth for the last several years, slumped with the onset of recession and witnessed reduction in demand by about 6.7% in 2008 as compared to the previous year. Tightened credit lines also contributed to the slowdown in the global fertilizer and agricultural markets, with prices of agricultural commodities falling sharply in 2009. Potash prices recorded at a high of US$900/ ton by the end of 2008 dropped to a price between US$600/ ton and US$700/ ton by the beginning of 2009. Major companies temporarily closed down production in wait for a possible demand increase and revival of prices.
Nevertheless, the world economies are gradually moving back on track, and demand for potash is also likely to regain normalcy at a slow rate, with complete recovery expected only after 2013.
Asia-Pacific, driven by high paced growth from emerging markets such as China and India constitutes the largest regional market, as stated by the new research report on Industrial and Caustic Potash. Europe and US follow as the next largest markets for potash. Asia is the world’s largest consumer of potash and the region shows active signs of intensifying production capacity in the near future. The trend is reflected in the overall growth potential of the region, forecast to expand at the highest compounded annual rate through 2015. Fertilizers comprises the largest end-use segment of industrial and caustic potash. The segment is also projected to sail ahead at the fastest CAGR over the assessment period 2007-2015.
Key market participants profiled in the report include Agrium Inc., Armand Products, Ashta Chemicals Inc., Haifa Chemicals Ltd., ICL Fertilizers, JSC Uralkali, K+S KALI GmbH, Occidental Chemical Corporation, PotashCorp, Qinghai Salt Late Potash Co., Ltd and The Mosaic Company.
The research report titled “Industrial and Caustic Potash: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, product overview, key markets worldwide, recent industry activity and profiles of market players worldwide. Analysis and overview is provided for major geographic markets such as US, Canada, Japan, Europe, Asia-Pacific, Latin America and the Middle East. Market analytics are provided in terms of thousand tons at the manufacturer’s level for end use segments including Fertilizers, Computer & TV Monitors, Food & Pharmaceuticals, Crystal & Ceramics, Soap and Others (dyes, oxalic acid, chemicals, paper, alkaline batteries, gas purification etc). The study also provides 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 –
About Global Industry Analysts, Inc.
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