July 2002

Trends and Resources

HP Impact: Ammonia producers foresee improving demand

Nitrogen-based fertilizer producers, specifically ammonia and urea manufacturers, have experienced dramatic declines in product pricing over the past year and have also had to contend with high natura..

Weirauch, Wendy, Hydrocarbon Processing Staff

Nitrogen-based fertilizer producers, specifically ammonia and urea manufacturers, have experienced dramatic declines in product pricing over the past year and have also had to contend with high natural gas prices. Natural gas is used as a feedstock to produce nitrogen-based fertilizers. According to a study by Industrial Information Resources, Inc. (www.industrialinfo.com), several U.S. and Canadian producers have closed their operations permanently, while even more have idled their production plants temporarily and reduced operation rates until the market improves. "Although some industry experts estimate that the utilization rate is currently nearing only 70%, we have already identifie

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