GCC – Thrust in Global Fertilizer Trade

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Supported by its strategic location between major export markets such as East Asia and GCC - Thrust in Global Fertilizer Tradethe United States, the GCC region has become a “powerhouse” in the global fertilizer trade, according to the Director General of the International Fertiliser Industry Association (IFA).
Last year, the region’s fertilizer products accounted for 30% of global urea and 16% of ammonia supply was said at the 4th Annual GPCA Fertilisers Convention in Dubai.
It also stated that the solution to make certain that people are fed is not only increasing arable land but also escalating the yield of current cultivated land.
“Food security is not only about the quantity of food but also quality. We don’t want a ‘hidden hunger’ situation where billions of people are deficient in micronutrients. Fertilizers are able to provide both the quantity of food to feed billions of people, but also quality food that is nourishing.”
The GCC fertiliser production was expected to attain 46.4mn tonnes by 2018. $10bn worth of projects is currently in the construction or planning stage in the GCC according to GPCA Secretary.
They estimates that the GCC’s fertiliser production capacity reached 31.4mn in 2012. According to the IFA, global fertilizer capacity reached 255.7mn tonnes in 2011, and is expected to grow by 1.8% per year in the next five years.
Each year GPCA evaluates that GCC fertilizers will grow by 10% in the same period.
An overflowing supply of natural gas and minerals has enabled fertilizer producers in the Arabian Gulf to play a major role in the supply of nitrogen-based and phosphate-based fertilizers such as urea, ammonia and di-ammonium phosphate (DAP) to global markets.
Analysts have warned of a slowdown in growth due to the availability of cheaper feedstock elsewhere due to the shale gas boom. The region’s fertilizer products portfolio is already expanding its mix to produce new grades.
GCC will capture a large share of the world’s phosphates trade over the next five years, the GPCA secretary said.