GCC Fertilizer Exports Set New Record in 2017
Fertilizer exports from Gulf Cooperation Council (GCC) countries set new records in 2017 despite escalating market protectionism as trade tensions continue between the US, China and the EU.
According to the Gulf Petrochemicals and Chemicals Association (GPCA), fertilizer exports from the Arabian Gulf reached 20.4 million t in 2017, a 5.3% rise year on year and a 6% compound annual growth rate (CAGR) for the period 2007-2017.
The top three export destinations were India, Brazil and the US. Asia accounted for 55% of total exports in 2017, followed by South America at 21%, North America at 15% and Africa at 7%.
GCC fertilizer production is estimated to reach 38.9 million t in 2018 and 47 million t by 2025, equivalent to a CAGR of 7.7% for 2007-2017. Saudi Arabia is expected to account for 46% of GCC output in 2018, followed by Qatar with 25% and Oman with 12%.
Sales revenues, which increased at a CAGR of 5.7% from 2010 to 2017, were $5.9 billion last year, albeit down from a peak of $7.2 billion in 2014 because of a drop in global prices.
Abdulwahab Al Sadoun, Secretary General of GPCA, said last year’s record export volumes have cemented the Arabian Gulf’s position as a globally recognized hub for fertilizers. He commented: “To sustain and increase this growth, the industry will need to continue to explore new markets globally and free trade will play a key role in ensuring its profitability and the sustainable development of the region.”
GPCA released the figures on the eve of the ninth GPCA Fertilizer Convention in Muscat, Oman.
