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In 2011, the overall global economic recovery slowed down. In the second half of the year, the European countries and the European countries experienced financial and financial instability, and the development of the global fertilizer industry was affected. However, on the whole, the global fertilizer market has maintained a good trend this year. It is not unrelated to the rapid growth of Asian economies represented by China and India. Both countries play a supporting role in the development of the global fertilizer industry. This is the news that the reporter got from the analysis of the global fertilizer market in the fourth quarter announced by Potashcorp.
The report shows that the increase in global food prices this year is still largely supporting the rise in fertilizer prices. Although the proportion of chemical fertilizers in the investment in crop production is lower than the historical average, the application of chemical fertilizers is still an important factor in increasing grain production. It is an indisputable fact that the demand for foodstuffs is steadily increasing.
It is understood that fertilizer production is the main cause of the increase in the consumption of synthetic ammonia. However, under strong demand this year, the global ammonia production capacity could not reach the expected level because of political and natural gas shortages. Technical issues caused the ammonia plant to be postponed or stopped production. These factors include restrictions on the supply of natural gas from Trinidad, natural gas shortages in Pakistan and India, instability in the political situation in the Middle East and North Africa, technical problems in European installations, etc., while exports of synthetic ammonia in the Commonwealth of Independent States, the Middle East and North Africa increased by a total of 3%. The reduction in the supply of major exporters led to a rapid rise in ammonia prices in the second half of 2011.
In terms of urea, Trinidad’s urea production was limited, production release was postponed, and technical problems in some equipment led to tight market supply. The reduction in China's urea exports has led to tighter supply in the international market within a certain period of time. However, new production capacity in the Middle East has increased and exports have increased.
The report shows that demand for major potash fertilizers remains strong this year. According to statistics, the consumption of potash fertilizer in China is close to the highest level in 2007, but the import volume has not reached the highest level in history. In 2011-2012, the contract for potash supply with India was postponed. It is expected that the potash load in the Indian market in 2011 will reach 4.5 million tons, and in the first quarter of 2012, India will usher in a large quantity of potash fertilizer. With high food prices in the North American market and high incomes for farmers, demand for potash remains relatively strong.
As 2011 is drawing to a close, optimistic optimism is the main theme of the international fertilizer market this year. Where will the International Fertilizer Market go in 2012, we will wait and see.
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