Ammonia is one of the most widely produced industrial chemicals in the world. It is the primary component used to produce all nitrogen containing fertilizers (urea, nitrates, ammonium sulphate, MAP and DAP), and is important in the manufacture of a wide range of industrial chemicals.
Key facts about the ammonia fertilizer market
- The global ammonia market amounts to 181 million tonnes, of which just 10% (19 million tonnes) is traded on the world market.
- Global capacity expanded at a higher rate than demand over 2011-2015 due to significant new investments and has now reached 230 million tonnes with utilisation rates below 80%.
- Growth of export-oriented capacity in Indonesia, Russia and Oman, and import substitution capacity in the US have led to more competition and a reshaping of trade flows (Trinidad and Indonesia looking for new markets and competing with the traditional suppliers).
- New developments in feedstocks: LNG inflow and cheaper gas prices across the world have made marginal ammonia producers more competitive, making the cost curve lower and flatter.
- New challenges: “green ammonia” technologies could change the landscape in the next 10-20 years.