Global Fertilizers Market: The Phosphate Saga

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Global Fertilizers Market The Phosphate Saga The
global fertilizers market, particularly in
phosphate and boron, faces challenges and
opportunities. Phosphate supply disruptions are
looming due to mineral deposits dependency,
mitigated partially by emerging alternative
sources. Also, major mining players entry into
the potassium market adds competitiveness but
maintains the supply-demand balance. As per
Inkwood Research, the global phosphate fertilizer
market is expected to record a CAGR of 4.65
during the forecast period, 2023-2032, while the
global boron fertilizer market is set to register
a CAGR of 7.76 during the same period.

• Further, regulatory shifts towards
  decarbonization propel green and blue ammonia
  production, buoyed by initiatives like the EUs
  Green Deal and the USs IRA. As these ammonia
  types become cost-competitive, their versatility
  beyond fertilizers, such as in electricity
  generation and decarbonized shipping, present
  promising avenues for market expansion and
  sustainability.
• This blog explores the latest trends in the
  global phosphate fertilizer market. Global
  Fertilizers Market The Phosphate Fertilizer
  Trends
• Growing Production of Green Ammonia
• Currently, fertilizer companies function as
  integrated ammonia and fertilizer producers,

converting ammonia primarily for captive uses
like urea and nitrates. The volumes of
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• ammonia traded in merchant markets are relatively
  small and mainly for industrial purposes such as
  explosives. However, by 2050, the merchant market
  is expected to surpass captive uses, with
  companies treating ammonia more like a commodity.
• Consequently, as the equilibrium between demand
  and supply becomes increasingly unstable, price
  volatility will rise, partly due to the
  substantial investments and lengthy timelines
  required to establish the supply-side
  infrastructure for green ammonia and develop
  necessary demand-side infrastructure like power
  plants and ship vessel fleets equipped with
  ammonia- fueled engines.
• The extent to which fertilizer companies can
  capitalize on these shifts hinges on the
  interconnected dynamics of the fertilizer,
  ammonia, and hydrogen markets in the years ahead.
  On the one hand, the significant ammonia
  production by energy companies could exert
  pressure on fertilizer prices, at least
  temporarily. In such a scenario, the supply
  buildup of green hydrogen and green ammonia might
  outpace the growth in demand for maritime uses
  and energy infrastructure. Nonetheless, farmers
  could benefit from cheaper nitrogen fertilizers.
• Conversely, the emergence of new ammonia
  applications could prove advantageous for
  fertilizer companies producing their own green
  and blue ammonia, especially if demand for green
  ammonia temporarily exceeds supply and commands
  higher prices for these applications compared to
  fertilizer products. However, in this situation,
  farmers might encounter sharp increases in
  fertilizer prices.
• Accordingly, engaging actively in green ammonia
  production and exploring new ammonia applications
  presents fertilizer players with the opportunity
  to diversify away from the cyclical agriculture
  industry, fostering growth even as agricultural
  demand contracts.
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• MAIREs New Fertilizer Project in Africa
• Stamicarbon, the nitrogen technology licensor of
  the MAIRE Group, continues to strengthen its
  presence in Sub-Saharan Africa. Stamicarbon has
  secured a second license contract for a plant
  with identical capacity and design for the same
  customer. This comes after the procurement of
  license and process design package (PDP)
  contracts in 2022 for the design of a 4000 MTPD
  melt and granulation plant.
• The world-scale integrated ammonia and urea
  complex in Sub-Saharan Africa will boast a
  capacity of 4,600 MTPD of ammonia and 8,000 MTPD
  of urea across two production trains. This
  grassroots project, slated for operational status
  in 2026, aims to meet the increasing demand for
  high-quality fertilizers in the region and
  globally, accredited to the plants strategic
  location.
• The advanced urea plants will incorporate
  Stamicarbons proven pool condenser with MP Flash
  design, resulting in significant reductions in
  energy consumption. Additionally, the granulation
  plant will employ Stamicarbons fluid bed
  granulation technology. The plants design
  includes an integrated off-gase acidic scrubbing
  system to minimize ammonia

emissions and salt reworking technology, an
innovative concept that eliminates wastewater
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• streams. The high-pressure equipment for both
  synthesis sections will be constructed using
  super durable duplex stainless steel Safurex.
  (Source)
• Global Fertilizers Market Future Prospects of
  Phosphorous
• Phosphorus fertilizer is necessary for modern
  food production and is the limiting factor in
  crop yield. As the worlds population steadily
  grows, food production will thus have to increase
  as well to meet the needs. The consequence
  followed is the elevated demand for phosphorus
  fertilizer.
• While global phosphorus and potassium supplies
  rely on mineral deposits, they remain unaffected
  by technological shifts. Although alternative
  phosphorus sources from waste stream recovery may
  contribute locally, they are unlikely to
  significantly impact global market dynamics.
• Furthermore, growing regulatory stringency and
  decarbonization objectives are driving future
  production towards green and blue ammonia.
  Initiatives such as the EUs Green
• Deal and Emission Trading System (ETS), the USs
  Inflation Reduction Act (IRA), and Japans
  Hydrogen Strategy are expected to render green
  and blue ammonia cost-competitive, if not cheaper
  than gray ammonia in these markets. Such aspects
  define the global fertilizers market growth
  trajectory.
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  expert NOW! FAQs
• What are the main challenges facing the phosphate
  fertilizer market?
• A The phosphate fertilizer market grapples with
  potential disruptions in supply owing to its
  reliance on mineral deposits, compounded by
  limited alternative sources. However, emerging
  initiatives for waste stream recovery offer
  localized solutions.
• How do regulatory changes impact the boron
  fertilizer market?
• A Regulatory shifts towards decarbonization,
  coupled with initiatives like the EUs Green Deal
  and the USs Inflation Reduction Act, are
  influencing the boron fertilizer market. These
  changes are fostering the development of greener
  alternatives like green and blue ammonia,
  potentially reshaping market dynamics and demand
  patterns.