The Explosive Grade Ammonium Nitrate Market Outlook report is the essential resource for everyone in this industry and includes:
- A round-up of the latest developments in EGAN supply, demand, trade and prices
- An overview of the key market players
- A global outlook of supply and demand for EGAN, and an assessment of future trade and prices to 2020
- An overview of recent developments and the outlook for the industry
The main difference between explosive grade ammonium nitrate (EGAN) and the fertilizer-grade ammonium nitrate (FGAN) is the density of the final product. The presence of voids enables the EGAN (also referred to as Low-density ammonium nitrate or Porous ammonium nitrate) prills to absorb and retain the fuel oil in an intimate mix (ammonium nitrate/fuel oil, ANFO). The main end-use sector for EGAN is coal mining while the remainder is accounted for by mining of iron ore, copper, gold, minerals, quarrying & construction activity. Commodity price prospects are crucial to the level of production and trade in metal & mineral commodities.
During the period 2005-late 2008 EGAN market conditions were healthy driven by growth in Oceania, Latin America and Asia. However, the situation changed quite dramatically with the global financial crisis of late 2008 which had an adverse impact on metal and mineral prices and production levels, thus leading to a significant drop in EGAN consumption.
The global economy has improved markedly in late 2009 and 2010, although there are concerns in relation to public sector debt in certain European countries. The strength of the economic growth in China and other emerging countries has supported growth in global demand for energy and metal commodities. China’s share of global energy and metals consumption has increased rapidly in the past two years, and its importance in the global trade for these commodities has increased.
Regarding supply, the period from 2005 to late 2008 was an expansionary phase for the EGAN industry when several brown-field expansions were implemented. The financial crisis of late 2008, however, changed the demand outlook and the EGAN industry had to scale back its expansion programme. Fortunately for the EGAN industry the recovery from the financial crisis has been relatively fast, and not only previously delayed projects have been put back on track but there has also been a flurry of new projects announcements in the last year and a half.
The Explosive Grade Ammonium Nitrate Market Outlook addresses the most important issues facing the industry and answers the following questions:
- When and where will new EGAN capacity be built?
- What are the recent changes in the mining industry which are likely to affect the outlook for EGAN consumption?
- What are the key factors affecting and determining EGAN prices?
- What are the constituents of EGAN production costs?