Brazil: Nitrogen Market 2024

Nitrogen Market Size in Brazil

In 2021, the Brazilian nitrogen market increased by 1.9% to $X for the first time since 2018, thus ending a two-year declining trend. The market value increased at an average annual rate of +4.2% over the period from 2012 to 2021; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. Over the period under review, the market hit record highs at $X in 2016; however, from 2017 to 2021, consumption remained at a lower figure.

Nitrogen Production in Brazil

In value terms, nitrogen production totaled $X in 2021 estimated in export price. The total output value increased at an average annual rate of +4.2% over the period from 2012 to 2021; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The growth pace was the most rapid in 2013 when the production volume increased by 52%. Over the period under review, production attained the maximum level at $X in 2017; however, from 2018 to 2021, production failed to regain momentum.

Nitrogen Exports

Exports from Brazil

In 2021, nitrogen exports from Brazil skyrocketed to X cubic meters, jumping by 171% on the previous year's figure. In general, exports continue to indicate a temperate expansion. The pace of growth was the most pronounced in 2019 when exports increased by 486% against the previous year. Over the period under review, the exports reached the peak figure at X cubic meters in 2013; however, from 2014 to 2021, the exports stood at a somewhat lower figure.

In value terms, nitrogen exports soared to $X in 2021. Overall, exports posted a prominent expansion. The pace of growth appeared the most rapid in 2013 when exports increased by 1,296%. As a result, the exports reached the peak of $X. From 2014 to 2021, the growth of the exports remained at a lower figure.

Exports by Country

Uruguay (X cubic meters) was the main destination for nitrogen exports from Brazil, with a 76% share of total exports. Moreover, nitrogen exports to Uruguay exceeded the volume sent to the second major destination, Paraguay (X cubic meters), fourfold.

From 2012 to 2021, the average annual rate of growth in terms of volume to Uruguay was relatively modest. Exports to the other major destinations recorded the following average annual rates of exports growth: Paraguay (+24.1% per year) and Argentina (+134.5% per year).

In value terms, Paraguay ($X) remains the key foreign market for nitrogen exports from Brazil, comprising 63% of total exports. The second position in the ranking was held by Uruguay ($X), with an 8.5% share of total exports.

From 2012 to 2021, the average annual growth rate of value to Paraguay stood at +17.9%. Exports to the other major destinations recorded the following average annual rates of exports growth: Uruguay (-3.0% per year) and Argentina (+109.5% per year).

Export Prices by Country

The average nitrogen export price stood at $X per cubic meter in 2021, with a decrease of -18.2% against the previous year. Over the period under review, the export price, however, posted a buoyant expansion. The growth pace was the most rapid in 2020 when the average export price increased by 387%. As a result, the export price reached the peak level of $X per cubic meter, and then shrank notably in the following year.

There were significant differences in the average prices for the major foreign markets. In 2021, amid the top suppliers, the country with the highest price was Paraguay ($X per cubic meter), while the average price for exports to Uruguay ($X per cubic meter) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was recorded for supplies to Uruguay (-2.7%), while the prices for the other major destinations experienced a decline.

Nitrogen Imports

Imports into Brazil

In 2021, overseas purchases of nitrogen were finally on the rise to reach X cubic meters for the first time since 2017, thus ending a three-year declining trend. Overall, imports, however, recorded a noticeable decrease. The most prominent rate of growth was recorded in 2017 when imports increased by 92%. Over the period under review, imports hit record highs at X cubic meters in 2014; however, from 2015 to 2021, imports failed to regain momentum.

In value terms, nitrogen imports soared to $X in 2021. In general, imports, however, continue to indicate a noticeable setback. The pace of growth was the most pronounced in 2014 when imports increased by 38% against the previous year. As a result, imports reached the peak of $X. From 2015 to 2021, the growth of imports remained at a somewhat lower figure.

Imports by Country

The UK (X cubic meters), the United States (X cubic meters) and Germany (X cubic meters) were the main suppliers of nitrogen imports to Brazil, with a combined 71% share of total imports. Argentina, Sweden, Paraguay, China and the Netherlands lagged somewhat behind, together comprising a further 25%.

From 2012 to 2021, the biggest increases were recorded for Sweden (with a CAGR of +974.3%), while purchases for the other leaders experienced more modest paces of growth.

In value terms, the United States ($X), Germany ($X) and China ($X) constituted the largest nitrogen suppliers to Brazil, together accounting for 75% of total imports. These countries were followed by the UK, Sweden, Paraguay, Argentina and the Netherlands, which together accounted for a further 17%.

Sweden, with a CAGR of +433.3%, recorded the highest growth rate of the value of imports, among the main suppliers over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

In 2021, the average nitrogen import price amounted to $X per cubic meter, with a decrease of -21.4% against the previous year. In general, the import price, however, showed a relatively flat trend pattern. The pace of growth was the most pronounced in 2018 an increase of 62%. Over the period under review, average import prices reached the maximum at $X per cubic meter in 2020, and then declined markedly in the following year.

There were significant differences in the average prices amongst the major supplying countries. In 2021, amid the top importers, the country with the highest price was China ($X per cubic meter), while the price for Argentina ($X per cubic meter) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Hungary (+58.4%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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