AUSTRALIA AMMONIA MARKET ANALYSIS

Market Challenges And Opportunities

Market Restraints

High dependency of  Australia agriculture industry on imports of fertilizer products from China and other countries is projected to impact the sales of ammonia for the production of fertilizers in the region. Moreover, variation in seasonal demand for fertilizers is also projected to lower the demand for ammonia, especially in Queensland and Victoria. Hence, the aforementioned factors are presumed to hinder the market growth of Australia ammonia over the forecast period.

Ammonia as a refrigerant has a major disadvantage due to its toxicity because of its hygroscopic nature, it spread to most areas of the body such as eyes, throat, and nose and may lead to severe burn injuries. Moreover, ammonia as a refrigerant may cause various skin and respiratory disorders on exposure. Hence, health issues associated with the exposure of ammonia as refrigerant is expected to hinder the Australia market growth over the forecast period.

Market Opportunities

The rising focus of the manufacturer of  Australia ammonia market to produce green ammonia in order to promote sustainability is expected to fuel market growth. For instance, in September 2019, on behalf of the Australian Government, the Australian Renewable Energy Agency (ARENA) provided US$ 1.90 million to fund to Queensland Nitrates Pty Ltd. (QNP), an Australian manufacturer of nitrogenous fertilizers, to assess the feasibility of the construction and operation of a renewable ammonia plant at its existing facility near Moura in Central Queensland.

Market Drivers

Rising consumption of ammonia-based fertilizer in agriculture in the Australian continent to enhance the yield productivity to meet the growing demand for food. In 2020-21, according to the Australian Bureau of Statistics Agricultural businesses, 387 million hectares of agricultural land was fertilized with mainly ammonia-based fertilizer. Both Western Australia and New South Wales used huge volumes of ammonia-based fertilizer during 2020-21.

Rising demand for household cleaning products as ammonia has excellent cleanser property and mainly used to produce household cleaning products such as window cleaners, bathroom cleaners, drain cleaners, toilet cleaners, oven cleaners, etc. Increasing disposable income of the people and improving the living of standards is another major factor expected to propel the market growth of the ammonia over the forecast period.