Source: Global Industry Analysts, Inc.

Global Industry Analysts, Inc. released its comprehensive global report on the phosphates market. The global market for phosphates is forecast to reach 68.7 million metric tons by the year 2015, driven by growing demand in developing countries. The growth is largely attributed to burgeoning population, change in income and diets as well as limited arable land. Demand for greater crop production will lead to a spurt in the popularity of biofuels and phosphate fertilizers.

Consumption of phosphates, to a large extent, depends on seasonal weather patterns and regulations governing the usage. Growth in the global market is expected to stem largely from the developing countries of Asia-Pacific, Latin America and Middle East. With relatively high usage of phosphates in fertilizers and detergents in Asia-Pacific and Latin America, the regions are poised to remain the pioneers for the phosphates market in the foreseeable future. China is the world’s largest phosphate rock producer, with production volume nearing 55 million tons in 2009, followed by the US as the next largest producing country. Morocco and Western Sahara, Russia, Tunisia, Jordan and Brazil comprise some of the other leading phosphate rock producers on a global scale. Lack of stringent regulatory restrictions offers ample growth opportunities in these markets. On the other hand, usage of phosphates in detergents is witnessing a diminishing trend in developed markets such as North America and Europe, owing to environmental hazards such as eutrophication and algal bloom in waterways. The global phosphoric acid market is presently staring at a crucial demand and supply imbalance, wherein production levels far exceed the actual demand. Similar to the situation in 2006, the global economic downturn in 2008-09 prompted a virtual collapse of fertilizer demand, amidst high supply levels. 

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