Latin America Magnesium Nitrate Market Size, Market Research and Industry Forecast Report, 2026 (Includes Business Impact of COVID-19)

                                          
Industry Insights, Market Size, CAGR, High-Level Analysis: Latin America Magnesium Nitrate Market


The Latin America magnesium nitrate market size was estimated at USD 78.3 million in 2018 and is expected to grow at a CAGR of 4.5% over the forecast period. The significant growth in demand for fertilizer in the farming sector and increasing use of explosives in mining industries is expected to drive the demand.
Magnesium nitrate is an odorless, crystalline, and colorless substance, which is primarily used as a catalyst for manufacturing fireworks and petrochemicals. It can be typically prepared by mixing calcium nitrate with magnesium sulfate, which is thereafter filtered to extract the insoluble calcium sulfate. In the explosives industry, it is used as an oxidizing agent to enhance the combustion of other substances used for producing explosives. In fertilizers industry, magnesium nitrate acts as a source of magnesium ion and the nitrate ion, which stimulate the healthy growth of crops.

Argentina has been one of the crucial markets for explosives due to the growing mining activities in the country. Several companies have been broadening their presence in the country to captivate the untapped potential. Despite the countrys depressed prices of commodities, it is regarded as a mining destination with multitude of new mining projects in the pipeline.

Latin America is considered as one of the prominent regions in terms of the production and export of crops. The region has witnessed robust growth in the production of crops over the last decade and this trend is expected to continue in the future. Magnesium nitrate is used in the formulation of various fertilizers, as it compensates for the deficiency of the nutrient in a plant. In addition, it contains nitrogen in the form of nitrate, which is the most efficient source of nitrogen for plant growth and yield.

The mining industry in Latin America has been thriving since the past few years and a plethora of metals such as copper, potash, lithium, iron ore, gold, and niobium have been unearthed. With a robust growth opportunity, several companies have made significant investments. In 2017, 305 companies invested a total amount of USD 2.38 billion in exploration activities, particularly in Mexico, Peru, Colombia, and Chile.

Application Insights of Latin America Magnesium Nitrate Market

Magnesium nitrate is majorly used as an additive which is projected to grow at a CAGR of 3.8% from 2019 to 2025. Magnesium nitrate, as an additive, is further utilized in formulating nitric acid, fertilizers, and specialty chemicals. It is also used as a catalyst in the preparation of explosives and other petrochemical products. The demand for magnesium nitrate is majorly fueled by its utilization as a fertilizer in the agriculture dependent economies in the region.

Nitric acid and fertilizer manufacturing are the major application areas for magnesium nitrate additives. The demand from agriculture and mining industry is expected to drive the Latin America magnesium nitrate market. The easy availability of raw materials and low cost of production has facilitated numerous fertilizer manufacturers to set up facilities in Brazil. This is likely to develop new opportunities for the utilization of magnesium nitrate in the region over the coming years.

The utilization of magnesium nitrate as a catalyst is growing rapidly in the petrochemicals and explosives industry. It is majorly used as a viscosity adjuster in the petrochemical industry. The favorable properties coupled with reduced risk of hazards associated with the product is anticipated to fuel its demand over the coming years. However, stringent government laws and regulations related to the use of explosives is likely to restrict the product demand in the mining sector.

Country Insights

Mexico emerged as the largest consumer of magnesium nitrate whereas Chile is observed to be the fastest-growing consumer with a CAGR of 4.6% during the forecast period. Rapidly growing mining activities have boosted the overall demand for mining explosives in the country.

Mexico has been reforming their grounds of the energy sector which has reflected a substantial impact on the fertilizers industry. According to the International Association of Fertilizer Industry, companies operational in fertilizer business in the country are facing high cost of manufacturing provided the old infrastructure facilities and age-old technology in extracting raw materials. This has ultimately led to lower country-level production and high dependency on imports. With the advancement in the energy sector, the natural gas industry shall witness investment from regional and foreign multinationals, thereby leading to the introduction of latest technologies. These advancements are likely to lower production and distribution cost of natural gas, eventually leading to decreased cost of fertilizer production.

Chile is a growing market in terms of explosives industry due to high mining activities supported by the government. Chile and Peru are among the two foreign investment open markets concerning mining operations that are aided by the government to subsequently increase the economic conditions of these countries. Companies such as Enaex which are among the top mining and blasting industries since the past 98 years have been observed to expand their business operations in Chile, which in turn shall pave way for magnesium nitrate demand over the forecast period.

Market Share Insights of Latin America Magnesium Nitrate Market

The market is highly competitive. The industry comprises prominent and well-established players such as Avantor Performance Materials, Haifa Mexico, Sigma Aldrich, American Elements, Van Iperen International, Yara International, Neochim PLC, AKO Kasei Co. Ltd., Rongyu Chemical Co. Ltd, DowDuPont.

Companies are undertaking several initiatives including frequent mergers, acquisitions, capital expansion, and strategic alliances. In March 2018 Van Iperen International announced a new subsidiary named Van Iperen America, located in Florida to strengthen its position in North as well as Latin America. In 2017, Yara acquired Vale Cubatao Fertilizantes complex, Brazil to strengthen its position in the local market.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Latin America Magnesium Nitrate Market Research Report

This report forecasts revenue growth at a regional & country level and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2026. For the purpose of this study, this market research report has segmented the report on the basis of application and country:

Application Outlook (Volume, Kilotons; Revenue, USD Million; 2014 - 2026)

  
Additives
  
Nitric Acid
  
Specialty Chemicals
  
Fertilizers
  
Others
  
Catalysts
  
Petrochemicals
  
Pyrotechnics/Explosives