The report titled “Asia Complex (NPK) Fertilizer Market Outlook to 2022 – by Grade (NPK 16-16-8, NPK 20-20-15, NPK 15-15-15, NPK 20-20-0 and Others), by Region (China, India, Vietnam, Indonesia, Thailand and Others)” by Ken Research suggested complex fertilizer production in Asia is expected to grow at a CAGR of 3.1% during 2018-2022, whereas consumption of complex fertilizers is expected to incline at a CAGR of 1.9% during the same period.
The nutrient imbalance in Asian countries has drastically increased as a result of overuse of urea which makes the soil acidic. For instance, the ideal N:P:K nutrient balance for Indian soil is 4:2:1 while the actual ratio was 6.8:2.7:1 at the end of FY’2017. With rising government focus on improving soil health, consumption of complex fertilizers is expected to grow at a faster pace than straight / conventional fertilizers. This highlights enormous potential for NPK complexes going forward.
Water soluble complex fertilizers are becoming increasingly popular with the growth in micro irrigation (drip and sprinkler based irrigation) sector. Several companies including Kingenta, Hubei Xinyangfeng, China XLX Fertiliser, IFFCO, Rashtriya Chemicals and Fertilizers Limited, Sitto Vietnam and many more have ventured into producing 100% water soluble complex fertilizers. Such fertilizers have been increasingly used in the Asian market in the last few years.
As per reports, Chinese government has agreed on lowering export tariff on complex fertilizers, reducing from current 30% export duty to CNY 100 (USD 15.14) per MT in 2018. Lowering of export duty in China, highest complex fertilizer producing nation in the world, is expected to boost complex fertilizer production and exports into other Asian countries which in turn will positively impact the Asia complex fertilizers market in the mid-long term
Furthermore, anticipated rise in international market prices of key raw materials including Urea, DAP and MAP would augment the market for complex fertilizers. Planned capacity expansion and rising demand for complex fertilizers due to ever increasing food demand in Asian subcontinent and heightened need to improve crop yield will drive the market growth in the near future.
Kingenta, Coromandel International, Binh Dien Fertilizer, Petrokimia Gresik and Thai Central Chemicals will remain the major players in this space in China, India, Vietnam, Indonesia and Thailand respectively.
For more information on the research report, refer to below link:
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Ankur Gupta, Head Marketing & Communications