Asia-Pacific to Encourage Growth of Ammonium Nitrate Demand



Ammonium nitrate (otherwise known as ammonium saltpeter, Merco Prills, Nitram, etc.) is commonly used in fertilizers given its high nitrogen content. Besides, it is widely used as a strong oxidizing agent in explosive mixtures. Other applications of ammonium nitrate comprise, among others, treatment of some titanium ores, instant cold packs, and more.

The global ammonium nitrate production demonstrated sustainable growth over the past few years following the recession of 2008-2009 when output rates decreased.

Region-wise, Europe is the largest market for ammonium nitrate in terms of production capacity, output as well as consumption. It is followed by Asia-Pacific and North America. Country-wise, Russia and China are the most prominent players.

Ammonium Nitrate: structure of the global capacity, by region

Ammonium Nitrate_global capacity

Russia can boast of having some of major ammonium nitrate producers (e.g. Uralchem and Borealis). The country exports more than 3 million tonnes of ammonium nitrate each year, with Brazil, Peru and Kazakhstan being among key destinations. Leading ammonium nitrate manufacturers in China include: Qingdao Chemstar Industrial Co. Ltd., JCIC, Jinsheng Huyang Chemical, to name a few.

The global ammonium nitrate production is set to continue growing in the years to come given planned launches of new facilities and capacity additions. For instance, a new plant will be constructed in Australia by a new JV. The consumption is also expected to continue growing, encouraged by increasing demand from Asia-Pacific.

More information on the ammonium nitrate market can be found in the cutting-edge research study “Ammonium Nitrate (AN): 2015 World Market Outlook and Forecast up to 2019”.