GCC: Nitrogen Market 2024

Nitrogen Market Size in GCC

The GCC nitrogen market expanded significantly to $X in 2021, increasing by 7.7% against the previous year. The total consumption indicated a resilient expansion from 2012 to 2021: its value increased at an average annual rate of +5.1% over the last nine-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, consumption decreased by -6.6% against 2019 indices. Over the period under review, the market reached the maximum level at $X in 2019; however, from 2020 to 2021, consumption stood at a somewhat lower figure.

Nitrogen Production in GCC

In value terms, nitrogen production totaled $X in 2021 estimated in export price. The total production indicated a perceptible increase from 2012 to 2021: its value increased at an average annual rate of +3.7% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, production decreased by -7.3% against 2019 indices. The pace of growth appeared the most rapid in 2014 when the production volume increased by 56%. Over the period under review, production reached the maximum level at $X in 2016; however, from 2017 to 2021, production remained at a lower figure.

Nitrogen Exports

Exports in GCC

After two years of growth, shipments abroad of nitrogen decreased by -17% to X cubic meters in 2021. Over the period under review, exports continue to indicate a noticeable decline. The pace of growth was the most pronounced in 2015 when exports increased by 63%. The volume of export peaked at X cubic meters in 2012; however, from 2013 to 2021, the exports failed to regain momentum.

In value terms, nitrogen exports fell remarkably to $X in 2021. Overall, exports saw a abrupt decrease. The pace of growth was the most pronounced in 2015 with an increase of 27% against the previous year. Over the period under review, the exports attained the peak figure at $X in 2012; however, from 2013 to 2021, the exports remained at a lower figure.

Exports by Country

Kuwait represented the main exporting country with an export of around X cubic meters, which reached 69% of total exports. It was distantly followed by the United Arab Emirates (X cubic meters), comprising a 28% share of total exports. Saudi Arabia (X cubic meters) took a little share of total exports.

Exports from Kuwait decreased at an average annual rate of -4.9% from 2012 to 2021. At the same time, the United Arab Emirates (+6.8%) and Saudi Arabia (+6.8%) displayed positive paces of growth. Moreover, the United Arab Emirates emerged as the fastest-growing exporter exported in GCC, with a CAGR of +6.8% from 2012-2021. The United Arab Emirates (+16 p.p.) significantly strengthened its position in terms of the total exports, while Kuwait saw its share reduced by -17.2% from 2012 to 2021, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Kuwait ($X), the United Arab Emirates ($X) and Saudi Arabia ($X) were the countries with the highest levels of exports in 2021, with a combined 99% share of total exports.

The United Arab Emirates, with a CAGR of +1.1%, recorded the highest rates of growth with regard to the value of exports, in terms of the main exporting countries over the period under review, while shipments for the other leaders experienced a decline in the exports figures.

Export Prices by Country

In 2021, the export price in GCC amounted to $X per cubic meter, declining by -10.3% against the previous year. Overall, the export price saw a noticeable decrease. The growth pace was the most rapid in 2014 when the export price increased by 43%. As a result, the export price attained the peak level of $X per cubic meter. From 2015 to 2021, the export prices remained at a lower figure.

There were significant differences in the average prices amongst the major exporting countries. In 2021, amid the top suppliers, the country with the highest price was Saudi Arabia ($X per cubic meter), while Kuwait ($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 Kuwait (-4.9%), while the other leaders experienced a decline in the export price figures.

Nitrogen Imports

Imports in GCC

In 2021, after two years of growth, there was significant decline in overseas purchases of nitrogen, when their volume decreased by -16.7% to X cubic meters. Over the period under review, imports recorded a abrupt descent. The growth pace was the most rapid in 2019 with an increase of 893% against the previous year. The volume of import peaked at X cubic meters in 2012; however, from 2013 to 2021, imports remained at a lower figure.

In value terms, nitrogen imports dropped remarkably to $X in 2021. Overall, imports continue to indicate a deep reduction. The pace of growth appeared the most rapid in 2019 with an increase of 227%. Over the period under review, imports reached the peak figure at $X in 2012; however, from 2013 to 2021, imports stood at a somewhat lower figure.

Imports by Country

Saudi Arabia was the main importer of nitrogen in GCC, with the volume of imports amounting to X cubic meters, which was near 82% of total imports in 2021. It was distantly followed by the United Arab Emirates (X cubic meters), constituting a 14% share of total imports. Bahrain (X cubic meters) held a relatively small share of total imports.

From 2012 to 2021, average annual rates of growth with regard to nitrogen imports into Saudi Arabia stood at -6.6%. At the same time, the United Arab Emirates (+2.8%) displayed positive paces of growth. Moreover, the United Arab Emirates emerged as the fastest-growing importer imported in GCC, with a CAGR of +2.8% from 2012-2021. By contrast, Bahrain (-7.7%) illustrated a downward trend over the same period. From 2012 to 2021, the share of Saudi Arabia and the United Arab Emirates increased by +19 and +9.5 percentage points, while the shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Saudi Arabia ($X) constitutes the largest market for imported nitrogen in GCC, comprising 58% of total imports. The second position in the ranking was taken by the United Arab Emirates ($X), with a 17% share of total imports.

From 2012 to 2021, the average annual growth rate of value in Saudi Arabia totaled -5.7%. The remaining importing countries recorded the following average annual rates of imports growth: the United Arab Emirates (+2.0% per year) and Bahrain (-13.9% per year).

Import Prices by Country

The import price in GCC stood at $X per cubic meter in 2021, falling by -29.3% against the previous year. In general, the import price, however, continues to indicate a relatively flat trend pattern. The pace of growth was the most pronounced in 2018 an increase of 213%. As a result, import price attained the peak level of $X per cubic meter. From 2019 to 2021, the import prices remained at a somewhat lower figure.

There were significant differences in the average prices amongst the major importing countries. In 2021, amid the top importers, the country with the highest price was the United Arab Emirates ($X per cubic meter), while Bahrain ($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 Saudi Arabia (+1.0%), while the other leaders experienced a decline in the import price figures.

Source: IndexBox Platform