H1 2023: Largest producers of Ammonium Nitrate in H1 2023 were CF Industries Holdings, Inc., EuroChem Group AG, and Acron Group’s Mineral Fertiliser. In January 2023, KAZAZOT, a prominent fertilizer producer in Kazakhstan, finalized Técnicas Reunidas as the contractor for the construction of a brand-new Urea, Ammonium, Nitric Acid and Ammonium Nitrate Complex which is worth USD 1 billion. The manufacturing facility will be situated in the southwest of the nation, in Aktau, Mangistau Oblast. The new complex will have a production capacity of 660 thousand tonnes per annum of ammonia, 577.5 thousand tonnes per annum of urea, 395 thousand tonnes per annum of nitric acid, and 500 thousand tonnes per annum of ammonium nitrate. Regionally, the Asia Pacific region was a leading consumer of ammonium nitrate in H1 2023. In the first three months of 2023, ammonium nitrate prices inclined in the Asia Pacific region. The pricing trend was supported by the strong demand by the downstream industries and active trade activity. However, from April 2023 onwards, ammonium nitrate prices went on a downward spiral in Asia. Prices in China decreased as a result of the low costs of the feedstock ammonia and coal, which lowered the ammonium nitrate production costs. Furthermore, it was noted that China decreased its exports in May 2023, causing inventories to build up and creating an oversupply in the nation. On the other hand, the US Ammonium Nitrate market witnessed a bearish market sentiment from the end of February 2023. The decline in the price of Ammonium Nitrate was mainly driven by a fall in feedstock Ammonia and Nitric Acid prices and diminished demand from the Nitrogenous fertilizer industry. Ample availability of ammonium nitrate in the inventories coupled with diminished demand from the downstream industries paved the way for a narrow supply gap in the US, consequently impacting the price.
H1 2022: In 2022, the global demand of Ammonium Nitrate had reached approximately 21 million tonnes with a growth of 3.55% in comparison to 2021. During H1 2022, the total production had reached roughly 10 million thousand tonnes. Giant producers of Ammonium Nitrate in H1 2022 were Acron Group’s Mineral Fertiliser, Uralchem JSC, and CF INDUSTRIES HOLDINGS, INC. Although Acron Group’s Mineral Fertiliser was leading in terms of production and held a market share of approximately 20% in H1 2022. CF Industries announced about permanent shutdown of its Ince manufacturing facility, located near Chester. The company revealed that it will now focus on restructuring its operating across United Kingdom and focus on long-term profitability. However, in H1 2022, Europe was leading in terms of consumption followed by Asia Pacific region. During H1 2022, there was a hike in ammonium nitrate market in terms of volume across Europe. The cost of fertilizers had reached record highs as a result of an energy shortfall that reduced output in Europe. Furthermore, while export limitations and trade penalties constrained the fertilizer supply in that region. Additional factors causing the hike in prices of ammonium nitrate was the increasing scarcity of the raw material ammonia, inflationary pressure, and logistical problems, which were persistent across Europe.
H2 2022: During H2 2022, the Ammonium Nitrate production levels grew momentum and reached approximately 11 million tonnes. The Ammonium nitrate market across Europe witnessed a downfall trajectory in H2 2022. Since no significant market shifts occurred, and prices of ammonium nitrate in Europe declined like those of other bulk of nitrates. The cost of producing ammonium nitrate decreased further as favorable weather conditions in the European region lowered the manufacturing expenses. The falling prices of ammonium nitrate were affected as a result of falling natural gas costs across the European nations. The demand of the commodity was quite low by the various downstream industries, which led to falling prices of ammonium nitrate in Europe. Furthermore, Asia Pacific also displayed similar market behavior in terms of price. The price of ammonium nitrate dropped as a result of a consistent supply of goods available on the market. Furthermore, there was a reasonable moderate price of raw materials and, the price trend of domestic ammonium nitrate was lowered. Although, ammonium nitrate producers gained some profits in H2 2022 from the moderate costs of the raw material across the Asia Pacific region.
The global Ammonium Nitrate market has reached approximately 21 million tonnes in 2022 and is expected to grow at a CAGR of 3.63% during the forecast period until 2032.
Ammonium Nitrate is a white crystalline salt compound with the chemical formula NH₄NO₃. This chemical is synthesized by reacting nitric acid and ammonia. In a final concentrator, the resultant solution is concentrated to 97.5-98%. The concentrated solution is sent to a prilling tower, and some of it is routed to a slurry tank. In the slurry tank, the filler is added and then ammonium nitrate solution is released, and its moisture content is adjusted. Ammonium Nitrate is hygroscopic in nature i.e., it is readily soluble in water. It's a popular nitrogen source because it includes both nitrate and ammonium and has a high nutritional content, thus, it is commonly used as fertilizer and mixed with other fertilizers. It provides plants with a quick dose of nitrate and fulfills the nutrition of plants. Additionally, this chemical is capable to get mixed readily with nitrogen fertilizers, improving the fertilizer's functionality and durability and enriching the plants. It's also a key ingredient in a variety of mining explosives, where it's combined with fuel oil and dispersed by an explosive charge.
The primary driver of the global Ammonium Nitrate market is its usage by Fertilizer Industry across the globe. The demand for high-quality crops is rapidly increasing, which has increased fertilizer consumption in recent years. The crops include maize, barley, and soybean, which tend to have applications in the food industry as well as other industries. ANFO (Ammonium Nitrate Fuel Oil) comprises approximately 94% porous ammonium nitrate, which is an industrial explosive combination widely employed in mine operations such as coal and metal. The rise in mining activities across the globe for extracting metals and coal for usage in various industries like metallurgy, energy, etc., is anticipated to further swell the demand for Ammonium Nitrate in the forthcoming years. The size of the global Ammonium Nitrate market is estimated to reach a volume of 30 million tonnes by 2032.
Based on region, Europe is dominating the Ammonium Nitrate market. In 2022, Europe held a market share approximately of 44% of the global Ammonium Nitrate. Moreover, Asia Pacific is the second largest consumer of this chemical. However, the rising fertilizer usage to cater to the crop demands in developing nations such as India and Bangladesh which have strong agricultural sectors is anticipated to swell up the demand for Ammonium Nitrate in the Asia Pacific region. Although, Russia holds the largest production capacity of ammonium nitrate.
Based on the end-user industry, the global Ammonium Nitrate market is segmented into Agriculture Industry, Explosives, Industrial application, and Others. Among these, the Agriculture Industry is the major market consumer with a share of roughly 60% in 2022. Owing to the rise in population curating a higher food demand, the agriculture industry is anticipated to see an expansion in the forecast period.
Major players in the production of Global Ammonium Nitrate are Acron Group’s Mineral Fertiliser, EuroChem Group AG, Uralchem JSC, CF INDUSTRIES HOLDINGS, INC., Abu Qir Fertilizer, PhosAgro, Fertiberia SA, Deepak Fertilisers And Petrochemicals Corporation Limited, Agroplychim AD, Nitratos del Peru, and others.
Years considered for this report:
Historical Period: 2015- 2022
Base Year: 2022
Estimated Year: 2023
Forecast Period: 2024-2032
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Objective of the Study:
• To assess the demand-supply scenario of Ammonium Nitrate which covers production, demand and supply of Ammonium Nitrate market in the globe.
• To analyse and forecast the market size of Ammonium Nitrate
• To classify and forecast Global Ammonium Nitrate market based on end-use and regional distribution.
• To examine competitive developments such as expansions, mergers & acquisitions, etc., of Ammonium Nitrate market in the globe.
To extract data for Global Ammonium Nitrate market, primary research surveys were conducted with Ammonium Nitrate manufacturers, suppliers, distributors, wholesalers and Traders. While interviewing, the respondents were also inquired about their competitors. Through this technique, ChemAnalyst was able to include manufacturers that could not be identified due to the limitations of secondary research. Moreover, ChemAnalyst analyzed various segments and projected a positive outlook for Global Ammonium Nitrate market over the coming years.
ChemAnalyst calculated Ammonium Nitrate demand in the globe by analyzing the historical data and demand forecast which was carried out considering the demand of Ammonium Nitrate from the end-use industries. ChemAnalyst sourced these values from industry experts and company representatives and externally validated through analyzing historical sales data of respective manufacturers to arrive at the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst.
Key Target Audience:
• Ammonium Nitrate manufacturers and other stakeholders
• Organizations, forums and alliances related to Ammonium Nitrate distribution
• Government bodies such as regulating authorities and policy makers
• Market research organizations and consulting companies
The study is useful in providing answers to several critical questions that are important for industry stakeholders such as Ammonium Nitrate manufacturers, customers and policy makers. The study would also help them to target the growing segments over the coming years (next two to five years), thereby aiding the stakeholders in taking investment decisions and facilitating their expansion.
Report Scope:
In this report, Global Ammonium Nitrate market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
Attribute
Details
Market size Volume in 2022
21 million tonnes
Market size Volume by 2032
30 million tonnes
Growth Rate
CAGR of 3.63% from 2023 to 2032
Base year for estimation
2023
Historic Data
2015 – 2022
Forecast period
2024 – 2032
Quantitative units
Demand in million tonnes and CAGR from 2023 to 2032
Report coverage
Industry Market Size, Capacity by Company, Capacity by Location, Operating Efficiency, Production by Company, Demand by End- Use, Demand by Region, Demand by Sales Channel, Demand-Supply Gap, Foreign Trade, Company Share, Manufacturing Process, Policy and Regulatory Landscape.
Segments covered
By End-Use: (Agriculture Industry, Explosives, Industrial application, and Others)
By Sales Channel: (Direct Sale and Indirect Sale)
Regional scope
North America, Europe, Asia Pacific, Middle East and Africa, and South America.
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Member - Board of Directors
Osaka Gas Co. Ltd
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What was global market size of Ammonium Nitrate in terms of volume in 2022?
Ans:
The global market size of Ammonium Nitrate has grown significantly in the past years and reached approximately 21 million tonnes in 2022.
Q2.
Which end-use industry is dominating the global Ammonium Nitrate market?
Ans:
Agriculture Industry is dominating the global Ammonium Nitrate market and consumed roughly 60% of the market in 2022.
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