Global Potassium Nitrate Market 2017-2021
About Potassium Nitrate
Potassium is one of the most important basic plant nutrients along with nitrogen and phosphate. With no substitute, potassium nitrate is a widely used in the form of fertilizers to enhance the crop yield. Potassium nitrate content in the soil is quite important as it is essential to maintain and increase food production. Potassium nitrate has many applications, the major one being in agriculture as fertilizers. Potassium nitrate contains nitrogen which is an important component of RNA (ribonucleic acid) and DNA (deoxyribonucleic acid). It constitutes the primary nutrients (along with potassium and phosphate) for the development of plants and increases yield. Other than fertilizers its most important use has been as a component of gunpowder.
Technavio’s analysts forecast the global potassium nitrate market to grow at a CAGR of 4.02% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global potassium nitrate market for 2017-2021. To calculate the market size, the report presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Potassium Nitrate Market 2017-2021
Technavio recognizes the following companies as the key players in the global potassium nitrate market: Haifa Chemicals, Migao, SQM, URALCHEM, and Yara.
Other Prominent Vendors in the market are: Barium and Chemicals, ICL, GFS Chemicals, Potash Corp, and Qinghai Salt Lake.
Commenting on the report, an analyst from Technavio’s team said: “One trend in market is increase in cross-border investments and joint ventures. The countries like North America and Canada have increased their investment in the potash mining, and they are also increasing potash-based fertilizer manufacturing plant. Other countries like Germany, Jordan, China, and Chile are also developing new facilities and having expansion plans of the existing plants.”
According to the report, one driver in market is subsidies for sales of fertilizers in developing nations. The market prices of fertilizers in most of the countries in sub-Saharan Africa and Southeast Asia are strictly regulated through the levy of duties and granting of subsidies. Agrarian economies such as India and Bangladesh are deficient in potash reserves and, therefore, import fertilizers or their feedstocks. This often results in huge price disruptions in the market and affects the purchase of fertilizers by farmers. Most of Asian countries, therefore, rely on the retail price administration of fertilizers and provide incentives to fertilizer producers, sometimes to the extent of 50%-60%, to ensure affordability to farmers. This also helps these nations to achieve food security. Liberalization of the fertilizer industry and the availability of free markets might be beneficial for the industry in the long term. It might not be the same for under-developed and developing economies as they are vulnerable to price distortions.
Further, the report states that one challenges in market is volatility in raw material prices. The major raw material to produce potassium nitrate is potash. After the collapse of the agreement between Belaruskali and Uralkali, there was a huge drop in the global potash prices. The market, which was once in the stronghold of two cartels led by Canpotex and Belaruskali, has now turned into a frontline with most of the players resorting to heavy price undercutting. As a result, the duopoly market is increasingly becoming an oligopolistic one. As the competition in terms of price increases, we expect increased pressures on the margins of the players, which may affect the capacity expansion plans and new investments into the industry. The global potassium nitrate market has been witnessing a downfall in price, due to the fall in prices for potash and other minerals belonging to the same group.
Haifa Chemicals, Migao, SQM, URALCHEM, Yara, Barium and Chemicals, ICL, GFS Chemicals, Potash Corp, and Qinghai Salt Lake.
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