The Global Market

At the end of 2019, market prices for phosphate were at a historic low. Key markets remained weak in the beginning of 2020, then started improving, as a result of strong farmer economics and favorable weather.

Price improvement continued in major markets, through the end of the year, driven by tight supply and strong demand from major markets. Prices increased by 25% in India and 32% in Brazil, compared to early 2020.

The world was hit by the COVID-19 pandemic in 2020 but the pandemic had limited impact on phosphate fertilizer demand, as fertilizers were classified as essential goods by most governments in the countries to which we supply. However, the lockdowns led to temporary production disruption at some facilities in India and China in the early part of the year. This development led to supply shortages in the market, which supported higher prices. Partly due to this constriction of supply, demand for our products remained strong in major markets. COVID-19 did have an impact on demand for ammonia, with a falloff in industrial demand globally. However, Ma'aden’s market diversification strategy has enabled the business to safely navigate through this challenging market and maintain its strategic position.