The 10th GPCA Fertilizer Convention – Transformation: A new era for the Agri-nutrients industry
The GPCA Fertilizer Convention has established itself as the Middle East’s leading platform to network, share best practice and exchange ideas for the future in a highly dynamic business landscape. Each year industry experts, thought leaders and high-level officials from the GCC and beyond come together to connect, expand their knowledge and share insight into the latest trends driving growth in the fertilizer market.
On day two of the conference, Thomas Heinrich, Senior Consultant, Energy and Chemicals Advisory, Nexant, discussed evolving fertilizer trends in major import markets. He highlighted the GCC industry’s dependence on exports, with the majority of fertilizer products such as ammonia, urea and DAP being highly commoditized. Commodities are characterized by low variation in specifications, while investment decisions into new capacity are usually based on various factors such as the availability and cost of raw materials, proximity to end-use markets, capital requirements and others. GCC producers are well established companies focused on exports based on relatively low raw material costs.
“Finding export destinations will become tougher in the future and some relief may come from plant closures in China”