Middle East: Nitrogen Market 2024

Nitrogen Market Size in the Middle East

After two years of decline, the Middle Eastern nitrogen market increased by 3.4% to $X in 2021. The market value increased at an average annual rate of +4.3% over the period from 2012 to 2021; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. As a result, consumption attained the peak level of $X. From 2019 to 2021, the growth of the market remained at a somewhat lower figure.

Nitrogen Production in the Middle East

In value terms, nitrogen production expanded sharply to $X in 2021 estimated in export price. The total production indicated a noticeable expansion from 2012 to 2021: its value increased at an average annual rate of +3.1% over the last nine-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, production decreased by -25.1% against 2018 indices. The pace of growth was the most pronounced in 2018 with an increase of 39% against the previous year. As a result, production attained the peak level of $X. From 2019 to 2021, production growth remained at a somewhat lower figure.

Nitrogen Exports

Exports in the Middle East

In 2021, overseas shipments of nitrogen decreased by -15% to X cubic meters for the first time since 2018, thus ending a two-year rising trend. Overall, exports saw a relatively flat trend pattern. The growth pace was the most rapid in 2019 with an increase of 51% against the previous year. Over the period under review, the exports reached the maximum at X cubic meters in 2020, and then declined markedly in the following year.

In value terms, nitrogen exports contracted markedly to $X in 2021. In general, exports showed a perceptible shrinkage. The most prominent rate of growth was recorded in 2019 with an increase of 43%. Over the period under review, the exports hit record highs at $X in 2012; however, from 2013 to 2021, the exports remained at a lower figure.

Exports by Country

Kuwait represented the largest exporter of nitrogen in the Middle East, with the volume of exports resulting at X cubic meters, which was near 56% of total exports in 2021. It was distantly followed by the United Arab Emirates (X cubic meters), Turkey (X cubic meters) and Israel (X cubic meters), together achieving a 40% 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, Israel (+77.8%), Turkey (+11.1%), the United Arab Emirates (+6.8%) and Saudi Arabia (+6.8%) displayed positive paces of growth. Moreover, Israel emerged as the fastest-growing exporter exported in the Middle East, with a CAGR of +77.8% from 2012-2021. While the share of the United Arab Emirates (+11 p.p.), Israel (+7.9 p.p.) and Turkey (+6 p.p.) increased significantly in terms of the total exports from 2012-2021, the share of Kuwait (-25.3 p.p.) displayed negative dynamics. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the largest nitrogen supplying countries in the Middle East were Kuwait ($X), the United Arab Emirates ($X) and Turkey ($X), with a combined 86% share of total exports. These countries were followed by Israel and Saudi Arabia, which together accounted for a further 9.4%.

Among the main exporting countries, Israel, with a CAGR of +78.3%, recorded the highest rates of growth with regard to the value of exports, over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Export Prices by Country

The export price in the Middle East stood at $X per cubic meter in 2021, declining by -14.1% against the previous year. Overall, the export price saw a pronounced decrease. The pace of growth was the most pronounced in 2014 an increase of 48%. As a result, the export price reached the peak level of $X per cubic meter. From 2015 to 2021, the export prices failed to regain momentum.

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 Turkey ($X per cubic meter), while Kuwait ($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 Israel (+0.3%), while the other leaders experienced a decline in the export price figures.

Nitrogen Imports

Imports in the Middle East

After two years of growth, overseas purchases of nitrogen decreased by -5.8% to X cubic meters in 2021. Overall, imports saw a noticeable decline. The most prominent rate of growth was recorded in 2019 with an increase of 62%. Over the period under review, imports reached the maximum at X cubic meters in 2012; however, from 2013 to 2021, imports remained at a lower figure.

In value terms, nitrogen imports fell rapidly to $X in 2021. In general, imports recorded a perceptible contraction. The pace of growth appeared the most rapid in 2020 with an increase of 38% against the previous year. Over the period under review, imports attained the peak figure at $X in 2015; however, from 2016 to 2021, imports stood at a somewhat lower figure.

Imports by Country

In 2021, Saudi Arabia (X cubic meters) represented the key importer of nitrogen, making up 48% of total imports. Israel (X cubic meters) ranks second in terms of the total imports with a 28% share, followed by the United Arab Emirates (8.2%) and Jordan (7.5%). Iraq (X cubic meters) and Bahrain (X cubic meters) took a little share of total imports.

From 2012 to 2021, the most notable rate of growth in terms of purchases, amongst the main importing countries, was attained by Israel (with a CAGR of +37.2%), while imports for the other leaders experienced more modest paces of growth.

In value terms, Saudi Arabia ($X) constitutes the largest market for imported nitrogen in the Middle East, comprising 35% of total imports. The second position in the ranking was taken by Israel ($X), with a 17% share of total imports. It was followed by the United Arab Emirates, with a 10% share.

In Saudi Arabia, nitrogen imports declined by an average annual rate of -5.7% over the period from 2012-2021. In the other countries, the average annual rates were as follows: Israel (+18.5% per year) and the United Arab Emirates (+2.0% per year).

Import Prices by Country

In 2021, the import price in the Middle East amounted to $X per cubic meter, dropping by -20.8% against the previous year. In general, the import price saw a relatively flat trend pattern. The pace of growth was the most pronounced in 2013 when the import price increased by 32%. The level of import peaked at $X per cubic meter in 2018; however, from 2019 to 2021, import prices stood at a somewhat lower figure.

Prices varied noticeably by country of destination: amid the top importers, the country with the highest price was the United Arab Emirates ($X per cubic meter), while Israel ($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

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