The situation on the American market is of primary importance for those preparing a forecast of ammonia market in 2013. The key indicators of agricultural sector and general economic situation of USA point to steady price growth. Ammonia consumption, including agricultural use (the so-called direct application to soil, unique application on a global scale) and industrial use in USA is estimated at 21,5 million tonnes in 2013. This means that the demand is expected to increase seeing that ammonia consumption in 2012 reached 21 million tonnes.
Ammonia consumption in USA
About 40% (8,5 million tonnes) of total consumption of ammonia is used by the manufacturing sector, e.g. for the production of cleaning products, cooling systems and pharmaceuticals synthesis. The remaining 60% (12,5 million tonnes) is used by the agricultural sector.
Domestic ammonia supply is estimated at 13,4 million tonnes. This means that US companies source much of the ammonia they consume from the Black Sea area (Russia and Ukraine), from the Far East and from Trinidad.
Perspectives on the American market
Domestic output of ammonia is USA is estimated at 16 million tonnes in 2016. However, the domestic demand will also have risen by then. Imports of ammonia to USA reached 6,3 million tonnes in 2012 and is expected to climb to 7,5 million tonnes in 2013.
Current estimates suggest that American farmers, encouraged by incentives provided by the US government, will cultivate corn on 39 million hectares in 2013, which is an increase compared to 38,7 million hectares in 2013. Corn and ethanol manufacturing are an important indicator for future situation on the ammonia market and fertilizers market overall. In 2012 American farmers used 4,5 million tonnes of ammonia for corn cultivation.
Ammonia is additionally an important resource for the manufacturing of DAP (diammonium phosphate) and UAN (a solution of urea and niter). It is worth mentioning that USA is the biggest UAN consumer in the world. “PUŁAWY” in the sole manufacturer of RSM (another solution of urea and niter) with 1 million tonnes output capacity.