Thursday 28 March 2024
 
»
 
»
Story

Gulf fertiliser production to reach 43m tonnes by 2021

DUBAI, August 9, 2016

Fertiliser production in the Gulf is set to expand to 43.1 million tonnes in the next five years, according to a new report by the Gulf Petrochemicals and Chemicals Association (GPCA).

At 37.8 million tonnes, the GCC’s current fertiliser capacity earns $6.3 billion in sales revenue, according to the GPCA’s 2015 Fertiliser Indicators report.

Additionally, capacity for this commodity has nearly doubled since 2005 due to strong demand from export markets, resulting in closer trade relationships with diverse markets such as India, the US and Brazil, it said.

“Since 2005, the GCC has been the epicentre of a dynamic fertiliser industry, whose growth has been driven by increased demand for food, growing access to feedstock and the rise in global population,” said Dr Abdulwahab Al Sadoun, secretary general, GPCA.

“With the recent focus of regional governments in developing their non- oil industries, Fertilisers will continue to be a key focus sector in the medium term,” he added.

With a production capacity of 16.7 million tonnes and 9.8 million tonnes respectively, Saudi Arabia and Qatar lead fertiliser production in the region, said the report.

However, relatively flat demand from local and global markets for fertilisers, coupled with macroeconomic volatility, challenges remain for regional producers, it said.

Dr Al Sadoun said: “There is no doubt that GCC fertiliser producers are encountering aggressive competition from producers with access to cheap feedstock as a result of the development of the shale gas in the US and coal based industries in China.”

“Being export oriented industry with over 60 per cent of the output destined for international markets, regional companies must formulate and execute new strategies to ensure that their cost leadership and supply chain costs are agile. Price competitiveness will ensure retaining and expanding market share in the future,” he added.

The report will be released at the GPCA Fertiliser Convention. Now in its 7th edition, the conference will be held in Dubai, UAE, from September 6 to 8.

With insights on the market outlook for commodities, to upcoming trends, the conference will host regional and global experts from the fertiliser industry, it added. – TradeArabia News Service
 




Tags: | production | 2021 |

More Energy, Oil & Gas Stories

calendarCalendar of Events

Ads