A notable feature of international trade in fertilizer materials is the development of the global movements of urea, the ammonium phosphates and potassium chloride. It is no coincidence that these are all products with a high nutrient concentration. A simple calculation demonstrates that an increase in concentration from 30% to 40% results in a 25% reduction in the transport and handling costs, an increase from 40% to 50% in concentration in a 20% reduction, and these costs can account for up to half the farm-delivered cost of a fertilizer.

Another trend during the past ten years has been the increase in the international trade of processed phosphates - ammonium phosphate, triple superphosphate and phosphoric acid, at the expense of phosphate rock. This increase occurred despite a fall in world phosphate fertilizer use.

Asia dominates the world import market for urea, ammonium phosphates and potash. China and India are particularly large importers and variations in their import requirements have a major impact on world prices.

Mt : million tonnes

Ammonia

Most of the traded ammonia is used to manufacture fertilizers but about 12% of the production is used to produce industrial chemicals. Between 1986/88 and 1999/2001 world ammonia trade increased from 8.2 to 12.4 million tonnes N.

Note: 1/ Approximately 0.7 million tonnes N is exported annually from Canada to the USA. 2/ West Europe, mostly trade between countries of the region.

Urea

About 25% of world urea production is exported.

*: Includes about 0.7 million tonnes N exported annually from Canada to the USA

Ammonium Nitrate (not illustrated)

Production of fertilizer grade ammonium nitrate (there is also a substantial production of explosive grade, low density ammonium nitrate) is concentrated mainly in Europe and North America. International trade amounts to about 4.5 Mt N per annum, 60% as concentrated ammonium nitrate (33.5% to 34.5% N), 40% as calcium ammonium nitrate (26% to 28% N). Much the largest net exporter is the FSU. Exports of ammonium nitrate from the former FSU averaged 1.4 Mt between 1998 and 2000 compared with zero prior to 1990.

Total nitrogen fertilizer trade
West Europe, Central Europe and the FSU

Total nitrogen fertilizer exports from Central Europe and the FSU increased from 18% of the world total in 1980 to about 30% in 2000, the availability for export having increased as the domestic consumption of these countries declined. During the same period West Europe changed from being a net exporter of nitrogen fertilizers to being a net importer of nitrogen fertilizers. In 2000/01 9.3 Mt N were applied in agriculture in the countries of the European Union, of which one third was imported from other regions.

Twenty years ago the main form of traded P2O5 was phosphate rock, which was processed in superphosphate and compound fertilizer plants predominantly in the developed world. Over the last 20 years, the role of phosphate rock as an export carrier of P2O5 has declined sharply as vertically integrated industries have been developed at or close to the site of rock mines. World phosphate rock exports fell from 53 million tonnes product in 1979 to 27 Mt in 1993 but subsequently increased to stabilize at around 30 million tonnes. The US industry has greatly reduced its exports of phosphate rock preferring to concentrate on downstream processing; U.S. rock exports declined from 6.9 million tonnes product in 1990 to 4000 tonnes today 

Correspondingly, world trade in processed phosphate products has increased substantially.

Phosphoric Acid (H3PO4)

For many years the trend has been towards the processing of phosphate rock in the regions with ample phosphate rock resources. Almost all the phosphoric acid plants in West Europe have been closed, for economic and environmental reasons.

Ammonium Phosphate (AP)

It is therefore ammonium phosphate, monoammonium phosphate (MAP) and diammonium phosphate (DAP), which has accounted for most of the increase in processed phosphate trade. Today DAP and MAP account for approximately 60% of world phosphate trade compared to 46% in the mid-1980s. 

Asia is the most important importing region for ammonium phosphate, followed by West Europe and Latin America.

World trade in potash, mostly potassium chloride also called muriate of potash, increased from about 18.9 to 19.2 Mt K2O during the past decade. Between 1999 and 2001, North America, mostly Canada, accounted for 44% of the exports, the FSU (Russia and Byelorussia) for 25%, West Europe, mostly Germany for 19%, and Israel and Jordan for 12%. China accounted for 14% of world imports, India for 8%.

Sulphur is traded as elemental sulphur (brimstone) and sulphuric acid. International trade in elemental sulphur amounts to about 20 million tonnes S per annum. Sulphuric acid trade, mostly intra-regional, amounts to almost 3 million tonnes S per annum.