Gulf fertiliser production to reach 43m tonnes in the next five years
Date
8/11/2016 3:28:03 AM
(MENAFN- Emirates News Agency (WAM))
DUBAI, 9th August, 2016 (WAM) 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 United States (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," Dr Abdulwahab Al Sadoun, Secretary-General, GPCA, said.
"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, the report said.
However, with the relatively flat demand from local and global markets for fertilisers, coupled with macro-economic volatility, the challenges remain for regional producers, it 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," Dr Al Sadoun said.
The report will be released at the GPCA Fertiliser Convention. Now in its 7th edition, the conference will be held in Dubai, from 6th to 8th September.
With insights on the market outlook for commodities to upcoming trends, the conference will host regional and global experts from the fertiliser industry.
WAM/tfaham