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The spark of chemical fertilizer, flame in China

Investigating the production and price of chemicals fertilizer in China

Chemical fertilizer produced in three general categories: nitrate, phosphate, and potash. In 1860, Germany as the first chemical fertilizer producer on an industrial scale started the operating by building a unit where produced phosphate chemical fertilizer from urea phosphate and its production’s reached to 175 million tonnes.

China is known as the largest producer and one of the biggest chemical fertilizer consumers in the whole world that its production’s amount had been about 54 million tonnes and its average price range of urea is estimated about 2.5 thousand Yuan per tonne in this country.

November 27, 2022 Fertilizers

Chile’s position in the global copper cathode trade is weakening

The global copper cathode trade

Chile has maintained its first position in the global market of copper upstream product, such as copper cathodes over the past 10 years, and has accounted for a share of 30%. But despite the greater prosperity of the copper trade, the global growth rate of Chile’s export share decreased.

Chile, Japan, and Russia are among the main copper cathode exporters in the world. These 3 countries accounted for about 43% of these upstream copper products in the global total export market on average, over the past 10 years.

November 16, 2022 Copper

China the lead crude steel producer from the past until now

Global crude steel production

The average global production of crude steel was around 1 billion 742 million tonne from 2012 to 2021. Global crude steel production reached 1 billion and 953 million tonne in 2021, up by 4% y/y.

China, India and Japan were among the global largest producers of crude steel in 2021. China took 53% of the global total share of crude steel production in 2020, with over 1 billion and 33 million tonnes. Crude steel is produced by two methods: melting in blast furnace (BOF) and steel production in oxygen converters and direct reduction of iron ore and direct reduced iron (DRI) in electric furnaces. China has produced over 90% of its crude steel through blast furnaces (BOF).

October 21, 2022 Crude Steel

The impression of Russia and Ukraine’s war on the alumina trade

The global alumina trade

Alumina is a result of bauxite refining, and it’s consumed as the raw material for aluminum production. Alumina’s transportation cost is lower than bauxite transportation and has more economic efficiency, leading to the aluminum producer countries providing their requirement as the alumina and because of that this material is traded with a high volume in the world.

The presence of the biggest bauxite deposits in Brazil and Australia turned these two countries into the largest alumina exporters in the world. However, the import of alumina isn’t exclusive and many countries are its importer in the world, but the largest exporter destinations for it are Russia, Canada, and China. This coming year won’t be stunning for the global alumina trade because of the expensive energy in Europe due to the war between Ukraine and Russia, consequently the reduction in alumina production in the world and stopping the export of this material from Ukraine to Russia lead to the drop in its trade and makes an unclear future for this trade.

October 9, 2022 Aluminum

The downward trend of mineral production and the significant growth of gold consumption in China

The top producers and consumers of gold in the world

Investment security and high profit margins have always attracted governments and public to gold trade. The high profit margin of gold production makes countries that have gold reserves seek to continue and increase production. Central banks are considered to be the main gold consumers as a financial support and people use it with the purpose of investment and ornamental.

The production and consumption of gold has increased y/y in 2021, which caused by the drop of pandemic disruption. China will continue to be the largest gold producer and consumer in the world in 2021. Overall, the production volume of mineral gold has increased by 3% y/y in 2021, and the consumption volume has increased significantly by 47%.

September 7, 2022 Precious Metals

Keeping production levels despite environmental restrictions

China's lead production in q2 2022

The analysis of China’s lead ingot production statistics in q2 2022 indicates a relatively significant growth in production y/y. Although the review of cumulative production statistics until the end of H1 2022, shows not significant difference in the production volume during the H1 of 2022 and 2021.

With the Covid-19 outbreak in March 2022, the increase in demand has occurred due to the lack of supplying goods following the consequences of the pandemic, and this caused the inventory to decrease by 4% in March, reached 4.4kt. Therefore, the production growth in May 2022 compared to 2021 was aimed at compensating the inventory drop in and meeting demand.

September 2, 2022 Lead & Zinc

Global crisis of copper market during Russia-Ukraine conflict

The impact of Russia-Ukraine conflict on the global copper market

Russia, as one of LME copper supplier, plays a key role in the supply of European copper, and the sanctions imposed after Russia-Ukraine conflict and the lack of purchase from Russia’s producers have faced Europe with a copper deficit and the copper price increased to over $10,000/t over the period.

The geopolitical tensions between Russia and Ukraine, followed by growth of the US interest rates and other central banks due to the higher global inflation, increasing the copper price at a certain point. The surge in fuel price led to a growth in transportation cost and other production costs, which also had an effect on the higher price of commodities, including copper.

August 14, 2022 Copper

Steel takes over the graphite electrode trade market

Trade of graphite electrodes

Graphite electrode is used in two sectors of electrical consumption and metal products, including silicon metals and steel, by the electric arc furnace (EAF) method, which considering the growth of related industries, including the aviation, electronics and packaging industry, the market of graphite electrodes is expected to experience an upward trend.

The global import and export volume of graphite electrodes was around 2.6Mt and 3.6Mt, respectively, in 2021 Iceland is the largest importer with an import share of 17% and China is the largest exporter of graphite electrodes with 65% of the market share.

August 3, 2022 Crude Steel

Sudden drop in zinc production in June 2022

View on China’s zinc production

China with having about 30% of the world’s zinc production turned into the largest zinc producer. Also, this country accounts for 48% of zinc metal consumption in the world, therefore it’s considered the biggest consumer of this metal, too.

China’s zinc production in April has 1.28% reduction in 2022 and in the same year just one month later has faced 3.79 increase, despite this fact that amount of production in June was lower than expected, the total production of these two months was able to solve it due to increase in May production.

July 28, 2022 Uncategorized

The prominent role of inorganic fluorine compounds and cryolite in the aluminum industry

Global cryolite trade

The export of synthesis cryolite in 2021, is estimated about 110,000 tonnes which Canada with having 21% of market’s share, is known as the biggest cryolite exporter in the world and the USA has got 99% of Canada’s export share so it’s the largest destination for it.

The global import level of synthesis cryolite in 2021 had been about 106,000 tonnes that the share of the USA of this import is about 29% and this turned it into the largest importer and Canada and Mexico is the biggest supplier for these countries.

July 27, 2022 Aluminum

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