Use of fertilizers grow 4.2% in 2012 and hits new record

The Brazil spent 29.5 million tons of fertilizers in 2012, a record, according to estimation of RC consultants. This is an increase of 4.24% of the 28.3 million tons recorded in the previous year. The official data, recorded by the National Association for the diffusion of Fertilizers (Anda), have not yet been disclosed.
To 2013, it is expected another record. According to RC, the farmers will sue 30.5 million tons, an increase of 3.38% of the estimated volume for the last year. The expectation is that the market is sustained by the growth of the area planted with grains and agricultural income.
"What will pull this fertilizer market growth is mainly soybeans," says Patricia Silveira, Managing Director of the RC. He estimated that revenue generated by 24.5% in 2013 to grow grain. (see story next). Sen says that sugar cane can also collaborate, albeit timidly, for increased consumption.
Imports should grow 3.5%, 18.9 million to 19.56 million tonnes in 2013. In 2012, according to RC, were spent $ 8.4 billion with these purchases, 4.97% reduction compared with the $ 8,84 billion in 2011. Over the past two years, the average price of imported inputs fluctuated between $ 440 and $ 450 per tonne.
The country imports about 75% of fertilizers that consumes. According to experts, the external dependency still will take to decrease, despite the forecast of investments of $ 18.9 billion for companies that operate in the country until 2017, according to a survey of Walks issued in August last year. This amount is estimated 45.4% higher than a year earlier for the same period.
Only projects related to potassium, whose external dependence reaches 90% of the Brazilian consumption must have $ 7.8 billion of investments until 2016, according to the Brazilian mining Institute (IBRAM).
The analyst at Scot Consultoria, Rafael de Lima Filho, provides stability or even a small retreat in demand for fertilizers in 2013. According to him, the investments made by producers last year-when there was expansion in size and good profitability in grain production-may limit the expansion of use of fertiliser this year.
Fertilizer prices on the world market, which has receded in the last three months in the face of lower demand, could fall further in the first half of the year, in the assessment of Child File. According to him, the demand of the United States-largest agricultural producer in the world – can be lower, since many areas damaged by drought last year did not produce. "The need for fertilization in these areas is less," he says.
Silveira, RC, projects a drop of 5% to 10% in the average price of fertilizers on the tendency of retreating oil prices and only modest growth in the world economy. Domestically, prices started the year under pressure. According to Scot Consultoria, a tonne of granulated potassium chloride shrank 4.2% in the first fortnight of January compared with December, to $ 1,289 a ton-a devaluation of 5% compared to January 2012. The demand must increase from February, with the planting of the second harvest (off-season) of corn and sugar cane.