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Abi will answer all Ammonia related
procurement queries with relevant data points
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Intelligence covers market and price outlook, SWOT analysis, demand & supply drivers, engagement models and Procurement best practices
Intelligence on category covers the following aspects market outlook, supply market, SWOT analysis, Cost components & Price outlook, Demand and supply drivers, Engagement Models and Procurement Best Practices
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Meet Abi
Discover Market Info
Manage Risk
Find Suppliers
Assess Category Performance
Source Market Indices
Abi will answer all Ammonia related
procurement queries with relevant data points
Abi - AI powered digital procurement assistant
Get up-to-date market and supplier info on Ammonia to help you build
Intelligence covers market and price outlook, SWOT analysis, demand & supply drivers, engagement models and Procurement best practices
Intelligence on category covers the following aspects market outlook, supply market, SWOT analysis, Cost components & Price outlook, Demand and supply drivers, Engagement Models and Procurement Best Practices
Assess Supplier Risk based on key risk and compliance parameters
Supplier assessment covers the following parameters Financial Risk, Ethical, Labor, Environmental Compliance, IT Security.
Supplier assessment is powered by world’s leading data partners including D&B, CreditSafe, Dow Jones, Refinitiv, Orpheus
Identify right fit suppliers based on your selection criteria including revenue, capabilities, certification, geography
Select suppliers based on industry, country, classification from a database of 4.2 mn suppliers. Get detailed supplier profiles with supplier capabilities, revenue, certifications, risk ratings
Benchmark your category performance against peers and the market
Measure category performance on 15 key parameters across cost, risk and strategy KPIs
Get information on key factors affecting your supply
Source Macro Data and Market Indices information from leading data sources across these key areas - Labor Rates, Currency, Energy, Country Risk, Trade Flow/Transportation, Port Data, Tariff, Weather and Epidemics
24 MMT
56 MMT
142 MMT
Category Intelligence on Ammonia covers the following:
Huge capacity additions in the Russia and Asia: More than a dozen of standalone and integrated ammonium plants are nearing completion, and it is expected to bring additional ammonia available in the merchant market. Thereby, reducing the pressure on ammonium prices
The ammonia market is expected to grow at a rate of 3% per year from 2016 until the end of 2022 according to experts in the field. The major supply markets of ammonia include Asia, North America, and the EU. Asia has the largest supply market as it accounts for 59% of the market, followed by the EU with 24%. North America accounts for 10% of the market while the rest of the world accounts for 8% of the global ammonia market share.
The global capacity of ammonia is 239 MMT in 2017 while the global demand is lesser at 189 MMT in 2017. However, there is an expected increase in demand in the future. Experts in the field predict there to be an increase in demand of about 234 MMT by the end of 2022. The CAGR of ammonia demand will be more than 5.2 percent. It is vital to understand the production size as it gives a full picture of the capacities in various regions for the ammonia market. In North America, the production size is 24 MMT while in Europe the production size is much higher at 56 MMT. Numerous global suppliers of ammonia exist. Some of the top suppliers include Yara, Nutrien, CF Industries, GS Caltex, and Terra.
The end-user industries of ammonia and ammonia liquor/aqueous ammonia include pharmaceutical products, agriculture, mining, and textiles among others. Ammonia is also used as a cleaning product and in the manufacture of products for sanitizing. According to the experts, the NPK/NP fertilizer contributes to the rise in the demand for ammonia and this will most likely continue in the future. This is particularly true in developing regions as they will have a higher demand for ammonia in the next few years. This is due to the increase in population in developing regions which will increase demand in sectors such as mining and agriculture. It is critical to note that more than 10 percent of the global consumption of ammonia is from the non-fertilizer sector. All ammonia that is produced is not traded. In fact, only 12 percent of it is traded while the rest is converted to fertilizers that are nitrogen-based.
The US is moving towards capacity additions that will have a major impact on the ammonia market. Experts predict that the global supply will improve within the next few years. This will continue till the end of 2022 according to experts. The US presently imports more than 3.5 MMT of ammonia. It is the largest region to import ammonia. It used to import ammonia from Trinidad and Tobago. However, it has planned capacity additions of more than 5 MMT based on shale gas. This means there will be a big
reduction in imports from that region in the US. 30 percent of ammonia that the US market produces is exported by Canada. As there is a trade route in these regions, trading is expected to improve further.
In the EU region, Russia will have an excess of ammonia as before. That is, Russia always had excess ammonia. Russia generally has surplus ammonia of more than 4 MMT. This excess production can help keep the ammonia prices stable in the future among other factors. In Asia, India imports ammonia from the Middle East and this can continue in the future until capacity additions are completed in various regions of Asia. Globally, 10 MMT of capacity additions is expected specifically of fertilizer production. This is because of the expected growth of up to 4 percent growth in the fertilizer market. Ammonia is required in the industrial sector too which is expected to grow in the region. The expected growth of this region is anywhere between 3 percent and 4 percent.
Ammonia Market Forecast: Ammonia markets in Asia and the US will remain frontrunners over the forecast period. The reason behind this is that both of them are planning derivative units. These derivative units include industrial usage, fertilizer, and direct application of ammonia. The US is going to turn into an exporter rather than a major importer because the production is going to increase rapidly in this region. In fact, it is going to turn into a net exporter in the next few years because it will meet its own demand and leave enough that can get exported to other regions in the world.
The ammonia price is likely to become stable because of capacity additions taking place at the moment. Numerous capacity additions are planned for the future too which can stabilize the ammonia commodity price in the market as there won’t be as much pressure on it. This is because of the excess ammonia that will be available globally as production will increase manifold across the globe. For example, regions such as Asia, the US, and Russia have many plants that are nearly completed which means an increase in ammonia production can be expected soon. These are integrated plants and standalone ones that are being focused on to ensure ammonia supply can meet the expected increase in ammonia demand.
In the ammonia market, there are two types of engagements that are popular; contract transactions and spot transactions. In the US, most of the transactions are contract-based. That is, up to 70 percent of the transactions are contract transactions. In Asia, 40 percent of the transactions are spot transactions. While in the EU, both spot transactions and contract transactions are equally preferred in the ammonia market. The contract period is anywhere between 1 and 2 years in the ammonia market. The ammonia price revisions can take place either every month or every quarter. When it comes to buyer power, Asia and North America have medium buyer power. The EU has low buyer power. The base oil supplier power is medium in North America and Asia in the ammonia market. In the EU, the base oil supplier power is high.
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