Trade data for January to May 2014 shows that increasing Chinese exports are significantly altering global AS trade flows. Export volumes to markets in Central America and to Turkey in particular have risen dramatically year-on-year but Chinese sellers are still unable to penetrate the Brazilian and US markets due to grade and quality concerns.
Chinese exports grew by 40% year on year in Jan to May 2014
Overall Chinese exports grew by 40% year on year in January to May 2014. Exports to Turkey grew from less than 1,000 tonnes in January to May 2013 to 66,000 tonnes this year, while volumes exported to El Salvador and Guatemala grew by 282% y-o-y to 128,000 tonnes.
Chinese AS exports are comprehensively covered in Integer Research’s Global Ammonium Sulphate Market Service, which provides in depth analysis of recent trends in and the outlook for the ammonium sulphate market.
Within the service, we have forecast an increase of around 40% in Chinese AS production between 2012 and 2020 and see this latest growth in exports as part of continuing trend of new Chinese production volumes altering the global market.
Switching from the “east of Suez” and “west of Suez” trade zones
Prior to the recent growth in AS production in China the global AS market was split between “east of Suez” and “west of Suez” trade zones. Product from Russia, Europe and North America was mostly sold predominantly to Latin American markets and Turkey, with small volumes flowing further east. Production from China, Japan and other East Asian countries was exported to South East Asia and product was not traded westwards.
As recent data shows, however, this dynamic has switched.
The impact and influence of AS grade on exports and the AS industry is also a key point for consideration. Within the Global Ammonium Sulphate Market Service we report grade premiums in major markets, something that supports the revenue and profitability of AS producers in North American and Europe in particular.
The Global Ammonium Sulphate Market Service
Integer Research’s Global Ammonium Sulphate Market Service is unique in providing analysis of the ammonium sulphate market at grade level, covering grade demand and premiums in all major markets for the following grade:
- Large crystal
- Steel grade
The service also provides historical and future AS production by production route for all major regions for the following sources of production:
- Coke oven gas
- Sulphate emissions scrubbing
|- Nickel & other metal processing