New North America Production Challenges Fertilizer Outlook

New North American nitrogen production is beginning to hit the world market in 2016 during a time of oversupply, and it could take the global market a few years to balance out this new production.  New capacity, lower energy prices and currency devaluations have all combined to put significant pressure on nitrogen fertilizer prices, according to a fertilizer industry consultant. Hoadley said world nitrogen production for 2015/2016 is expected to be just over 165 million tons, which is up from closer to 143 million tons in 2009/2010. Roughly about 20% of the market accounts for industrial uses, he said. World nitrogen demand shows a consistent growth of about 2% a year. The world nitrogen capacity growth should slow after 2017 once the new North American production is on the world market, he said.