Source: The International Fertilizer Industry Association
The International Fertilizer Industry Association (IFA) released its Fertilizer Outlook 2010-2014. The report highlights that, after a gloomy year in 2009, fertilizer demand is seen firmly rebounding in 2010 and growing at sustained rates in the next four years. On the fertilizer supply side, the growth of capacity is slower than anticipated last year because of numerous delays in announced projects. However, in the long-term, a potential supply surplus for nitrogen (N) and potassium (K) fertilizers can be expected due to a faster increase in capacity compared to that of demand.
After two consecutive bumper crops, it is anticipated that the 2010 world cereal output will reach a new record of 2.28 billion metric tonnes (Bt), according to FAO. With world cereal utilization seen at some 2.25 Bt, global grain stocks would remain unchanged and relatively low at the end of the 2010/11 marketing campaign. In response to relatively stable supply/demand conditions since the beginning of 2009, international cereal prices have remained fairly constant, above pre-crisis levels. A return to more stable crop prices is making it less risky for farmers to invest in fertilizers than a year ago, resulting in a more rapid recovery in phosphate (P) and potassium (K) demand than had been foreseen.