KEENE, N.H., Aug. 3, 2016 /PRNewswire/ -- Green Markets- China is being displaced as the world's swing manufacturer of the most ubiquitous fertilizer product, urea.
During the first half of 2016, China exported approximately 5.1 million metric tons ("mmt") of urea vs. 6.75 mmt during the same time in 2015. In the same period, there were significant pricing dynamics at play: the primary input cost in the manufacture of Chinese urea, anthracite coal, was relatively stable; while benchmark US Gulf (NOLA) urea prices retreated an additional 17%.
So as China slowed its pace of exports by 25% this year, presumably tightening global supplies, benchmark prices still fell because of increased global product availability. China is running at a reported 65% of production capability, but global additions are removing the need for higher cost Chinese urea across regional markets.
Said Neil Fleishman, Director at fertilizer market research firm Green Markets, "This data clearly indicates that recent capacity increases around the world are removing China's status as the marginal producer of urea. We at Green Markets have anticipated this shift for some time and now we can see it materializing right in front of our eyes."
At Green Markets' NITROGEN FERTILIZER NORTH AMERICA conference on August 22nd in Las Vegas, the dramatic shifts taking place in the U.S. urea market will be explored in detail, along with insight on the other key nitrogen fertilizer markets of ammonia, ammonium nitrate and ammonium sulfate.
In addition, the conference will cover other critical topics such as the outlook for U.S. natural gas costs, and the potential for fertilizer industry consolidation during this period of low prices and challenged earnings.
The faculty of NITROGEN FERTILIZER NORTH AMERICA consists of:
- Eric Bober, Vice President, Energy & Chemicals, Nexant
- Neil Fleishman, Director of Research, Green Markets
- Vince Piazza, Senior Analyst U.S. Oil & Gas, Bloomberg
- Jason Newton, Head of Market Research, Agrium
- Tim Mizuno, Manager of Market Research, Potash Corporation of Saskatchewan
- Barry Stolzman, Senior Vice President, Marsulex Environmental Technologies.
NITROGEN FERTILIZER NORTH AMERICA is an all-new conference that brings together experts to provide clarity in a confusing operating environment. Not a trade show, NITROGEN FERTILIZER NORTH AMERICA is all business, thought leadership, and direction.
Registration is available at for only $549 at www.FertilizerPricing.com/Nfert, and includes breakfast, luncheon, and networking cocktail reception.
About Green Markets
Green Markets is the most trusted, widely read publication for fertilizer business news, analysis and market activities for over 40 years.
Green Markets delivers over 350 trusted price assessments each week: ammonia, urea, other nitrogens, phosphates, potassiums and sulfurs. PLUS — regional market reports that give organizations detailed insight on pricing trends. Along with weekly intelligence services, Green Markets provides proprietary fertilizer market research and analysis, custom data feeds, in-person event, and confidential Advisory Services.
Green Markets' parent company, Bloomberg BNA, a wholly owned subsidiary of Bloomberg, is a leading source of legal, regulatory, and business information for professionals.
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SOURCE Green Markets