Spring on fertilizers market
International Fertilizer Industry Association (IFA) has forecast that in the season ending July 1st ,2013 the global demand for fertilizers will have increased by 0.3%. In season 2013-2014, the consumption of potassium fertilizers will increase by 4.5% to 30 million tonnes, phosphorous – by 3.5%, to 42 million tonnes and nitrogen-based fertilizers by 1.5%, to 111 million tonnes. The largest growth will concern South-East Asia as well as North and Latin America, and also the Caribbean. Analysts believe that increased demand might stimulate an upward trend in prices of fertilizers.
Farmers, for whom fertilizers are an indispensable tool for improving efficiency, were trying to buy the product as early as possible, just like in the previous year. Representatives of the sector and market analysts believe that such behaviors of end users result from uncertainty related to continuing economic crisis. Unpredictable situation in the economy hampers more decisive moves by the farmers.
A sharp increase of demand is far from expected, especially in the current macroeconomic situation. A steady growth of interest in fertilizers is more probable and actually happening.
According to market analysts, despite fears concerning global economy, farmers manage to obtain resources for new investments, including fertilizers. One important source of financing are direct subsidies. Consequently, a growth of purchases by end users is quite certain.