MERCOSUR: Nitrates Market 2024

Nitrates Market Size in MERCOSUR

In 2021, the MERCOSUR nitrates market was finally on the rise to reach $X after two years of decline. In general, consumption continues to indicate a remarkable increase. As a result, consumption reached the peak level of $X. From 2019 to 2021, the growth of the market failed to regain momentum.

Nitrates Production in MERCOSUR

In value terms, nitrates production shrank slightly to $X in 2021 estimated in export price. Over the period under review, production continues to indicate a resilient increase. The most prominent rate of growth was recorded in 2018 with an increase of 75% against the previous year. As a result, production reached the peak level of $X. From 2019 to 2021, production growth remained at a lower figure.

Nitrates Exports

Exports in MERCOSUR

Nitrates exports fell notably to X tons in 2021, declining by -16.5% on the previous year. Overall, exports faced a abrupt setback. The pace of growth was the most pronounced in 2017 with an increase of 74%. As a result, the exports attained the peak of X tons. From 2018 to 2021, the growth of the exports remained at a somewhat lower figure.

In value terms, nitrates exports rose sharply to $X in 2021. In general, exports continue to indicate a deep reduction. The pace of growth appeared the most rapid in 2017 when exports increased by 44%. As a result, the exports attained the peak of $X. From 2018 to 2021, the growth of the exports remained at a somewhat lower figure.

Exports by Country

Colombia dominates exports structure, amounting to X tons, which was near 84% of total exports in 2021. Peru (X tons) took a 9.3% share (based on physical terms) of total exports, which put it in second place, followed by Brazil (6.2%).

Exports from Colombia decreased at an average annual rate of -14.7% from 2012 to 2021. At the same time, Peru (+24.5%) displayed positive paces of growth. Moreover, Peru emerged as the fastest-growing exporter exported in MERCOSUR, with a CAGR of +24.5% from 2012-2021. By contrast, Brazil (-3.4%) illustrated a downward trend over the same period. Peru (+8.9 p.p.) and Brazil (+4 p.p.) significantly strengthened its position in terms of the total exports, while Colombia saw its share reduced by -8.2% from 2012 to 2021, respectively.

In value terms, Colombia ($X) remains the largest nitrates supplier in MERCOSUR, comprising 63% of total exports. The second position in the ranking was held by Peru ($X), with an 18% share of total exports.

In Colombia, nitrates exports declined by an average annual rate of -13.3% over the period from 2012-2021. The remaining exporting countries recorded the following average annual rates of exports growth: Peru (+22.1% per year) and Brazil (-6.8% per year).

Export Prices by Country

The export price in MERCOSUR stood at $X per ton in 2021, rising by 36% against the previous year. Export price indicated a notable expansion from 2012 to 2021: its price increased at an average annual rate of +2.4% over the last nine-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, nitrates export price increased by +119.8% against 2019 indices. The growth pace was the most rapid in 2020 when the export price increased by 61%. Over the period under review, the export prices attained the peak figure in 2021 and is expected to retain growth in the immediate term.

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 Brazil ($X per ton), while Colombia ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Colombia (+1.7%), while the other leaders experienced a decline in the export price figures.

Nitrates Imports

Imports in MERCOSUR

In 2021, purchases abroad of nitrates (excluding those of potassium) increased by 16% to X tons, rising for the fifth year in a row after three years of decline. Total imports indicated a resilient increase from 2012 to 2021: its volume increased at an average annual rate of +7.9% over the last nine-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, imports increased by +72.1% against 2016 indices. The growth pace was the most rapid in 2017 when imports increased by 32%. Over the period under review, imports hit record highs in 2021 and are expected to retain growth in years to come.

In value terms, nitrates imports surged to $X in 2021. Total imports indicated a temperate increase from 2012 to 2021: its value increased at an average annual rate of +4.4% over the last nine-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2017 when imports increased by 28%. Over the period under review, imports hit record highs at $X in 2018; however, from 2019 to 2021, imports failed to regain momentum.

Imports by Country

Chile represented the major importing country with an import of around X tons, which recorded 46% of total imports. Peru (X tons) held the second position in the ranking, distantly followed by Brazil (X tons) and Ecuador (X tons). All these countries together held approx. 49% share of total imports. Colombia (X tons) and Argentina (X tons) took a minor share of total imports.

From 2012 to 2021, the biggest increases were recorded for Brazil (with a CAGR of +17.9%), while purchases for the other leaders experienced more modest paces of growth.

In value terms, the largest nitrates importing markets in MERCOSUR were Chile ($X), Brazil ($X) and Peru ($X), with a combined 78% share of total imports.

In terms of the main importing countries, Brazil, with a CAGR of +8.2%, recorded the highest growth rate of the value of imports, over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

In 2021, the import price in MERCOSUR amounted to $X per ton, increasing by 3.6% against the previous year. In general, the import price, however, showed a pronounced decrease. The pace of growth appeared the most rapid in 2016 an increase of 20%. The level of import peaked at $X per ton in 2018; however, from 2019 to 2021, import prices remained at a lower figure.

Prices varied noticeably by country of destination: amid the top importers, the country with the highest price was Argentina ($X per ton), while Chile ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Colombia (+1.7%), while the other leaders experienced mixed trends in the import price figures.

Source: IndexBox Platform