A 4,000-Word Comprehensive Guide to the Path of Strengthening the Calcium-Magnesium Fertilizer Industry

2020-11-20

Li Fan Wang Jun

China Nitrogen Association Nitro-Calcium-Magnesium Fertilizer Branch


 

Currently, China's agriculture has entered a period of high-quality development, making it imperative to optimize the structure of fertilizer products. Promoting the application of calcium fertilizers is essential to enhancing agricultural quality and efficiency. In Jiaocheng County, Shanxi Province—known as “China’s Calcium Capital”—new-generation fertilizer enterprises such as Shanxi Huaxin Fertilizer, Hongxing Chemical, Sanxi Chemical, and Jinlan Chemical, leveraging the county’s abundant coal and calcium carbonate resources, have expanded their industrial chains and optimized product structures through technological upgrades and innovation. They have also focused on energy conservation and consumption reduction, enhanced their R&D capabilities, and improved equipment levels, thereby achieving rapid industrial growth. Their nitrocalcium fertilizer products have earned a solid reputation in both domestic and international markets, establishing the county as a leading hub for the development of China’s nitrocalcium-magnesium fertilizer industry.

 

Senior Advisor of the Nitro-Calcium-Magnesium Fertilizer Branch, China Nitrogen Fertilizer Industry Association / General Manager, Sanxi Chemical Co., Ltd., Jiaocheng County, Niu Tianliang

 

 

At the 2020 Nitric Acid and Ammonium Nitrate Industry Working Conference and the Nitro-Calcium-Magnesium Fertilizer Branch Working Conference, Niu Tianliang, Senior Advisor of the Nitro-Calcium-Magnesium Fertilizer Branch of the China Nitrogen Fertilizer Industry Association and General Manager of Sanxi Chemical Co., Ltd. in Jiaocheng County, analyzed the current status of the calcium-magnesium fertilizer industry and put forward recommendations for its healthy development.

 

Consultant Niu Tianliang’s Special Interview Video on Calcium-Magnesium Fertilizer

 

Current Status of the Domestic and International Calcium-Magnesium Fertilizer Market

 

Niu Tianliang stated that in recent years, with the liberalization of the fertilizer market and the continuous advancement of agricultural production technologies, China’s fertilizer application has been shifting toward nutrient balance. Due to the negative effects caused by excessive application of high-concentration macronutrient fertilizers and the relatively delayed adoption of organic fertilizers, people have come to widely recognize the critical role of meso- and micronutrients in enhancing crop yield and quality. This has created favorable growth prospects for the meso- and micronutrient fertilizer industry. Calcium-magnesium fertilizers, a major type of secondary-element fertilizer, are fully water-soluble and deliver rapid results, making them the primary raw material for liquid fertilizers on the market. They play an extremely important role in plant nutrition and have experienced relatively rapid development in recent years, achieving promising application outcomes.

As for calcium fertilizers, their development has been relatively slow. The market offers a wide variety of products, including agricultural lime, calcium-sulfur fertilizer (phosphogypsum), lime nitrogen, ordinary calcium phosphate, heavy calcium phosphate, calcium-magnesium phosphate fertilizer, and slag calcium, among others. Some of these are classified as soil-conditioning phosphate fertilizers, while others, although they can provide some calcium nutrition, cannot meet the high calcium demands of rapidly growing melons, fruits, and vegetables, and thus have low calcium availability. For this reason, in recent years, calcium and magnesium supplements used extensively on economic crops have primarily been calcium nitrate, ammonium calcium nitrate, magnesium nitrate, and calcium-magnesium nitrate fertilizers.

Compared to the domestic calcium-magnesium fertilizer market, the international calcium fertilizer industry is relatively mature. Common types of calcium fertilizers include: agricultural lime, calcium phosphate, lime nitrogen, potassium sulfate-calcium-magnesium, calcium nitrate, and calcium ammonium nitrate. Agricultural lime is primarily used to neutralize acidic soils and also serves as a fertilizer, providing plants with essential nutrients such as calcium and magnesium.

The application of agricultural lime is widespread worldwide. In 2018, U.S. consumption of agricultural lime reached 93,000 tons. Since the application of urea tends to lower soil pH, additional lime is required to maintain the soil pH within an optimal range. In Western Europe and Japan, lime consumption in the agricultural sector was 3.06 million tons and 2.68 million tons, respectively. Demand for lime in agriculture is expected to continue growing slightly over the coming years.

Superphosphate and triple superphosphate are primarily used as phosphate fertilizers. They are produced from phosphate rock and sulfuric acid or phosphoric acid, respectively, and can also provide calcium and other nutrients essential for plants.

Currently, the global annual production and consumption of single superphosphate amount to approximately 4 million tons (calculated based on P2O5). China is the largest producer and the second-largest consumer. The largest consumption region is Central and South America, accounting for 24% of the world’s total consumption. Due to its relatively low nutrient content, single superphosphate is not well-suited for long-distance transportation and is gradually being replaced by phosphate fertilizers with higher nutrient levels, such as MAP, DAP, and triple superphosphate.

The annual production and consumption of triple superphosphate amount to approximately 2.6 million tons (calculated based on P2O5). Overseas production is concentrated primarily in regions such as Africa, Central and South America, and the Middle East, while production in countries and regions including Western Europe, Southeast Asia, and the United States has shown a downward trend year by year. The largest consumer region remains Central and South America.

Calcium cyanamide (CaCN₂), also known as calcium cyanamide, has a production capacity of over 1.5 million tons per year, with an actual output of approximately 1 million tons and an average plant utilization rate of 71%. The global production of calcium cyanamide is concentrated mainly in countries such as China, Germany, and Japan. Major producers include SKW GmbH of Germany (200,000 tons per year), Odda Smelteverk of Norway (100,000 tons per year), and JFE Steel Corporation of Japan (230,000 tons per year).

The world’s apparent consumption of calcium cyanamide is approximately 1 million tons. In Europe, Japan, Taiwan Province, and Southeast Asia, it is primarily used as a slow-release base fertilizer to adjust soil alkalinity; the remainder is used for the production of dicyandiamide and thiourea. In China, however, the vast majority of calcium cyanamide is used for the production of chemical products such as dicyandiamide.

Potassium magnesium sulfate was first introduced to the market as a novel fertilizer product in 2012, primarily in Europe, with key markets concentrated in countries such as the United Kingdom, France, Germany, the Netherlands, and Belgium. The main crops targeted for application of potassium magnesium sulfate include wheat, rapeseed, pasture grasses, and potatoes. Starting from 2015, the sales market for potassium magnesium sulfate expanded beyond Europe to include countries such as Poland, China, the United States, Brazil, and Chile. At the same time, the range of crops suitable for potassium magnesium sulfate has been broadened to encompass soybeans, corn, and vegetables. As a result, the annual sales volume of potassium magnesium sulfate has experienced significant growth. Compared to the annual sales volume in 2010, the 2015 sales volume more than doubled. In 2019, global production and sales of potassium magnesium sulfate reached 650,000 tons.

Calcium nitrate and calcium ammonium nitrate were produced as byproducts of nitrophosphate fertilizer using the freezing method by Norway's Norsk Hydro company in the mid-20th century. Subsequently, these products have been developed and widely adopted in Europe, the Americas, the Middle East, and South Asia. Today, their applications have become extensive in countries and regions including Europe, the Americas, and Australia.

In some European countries, the consumption of calcium ammonium nitrate already accounts for 60% of the total ammonium nitrate fertilizer market, and its price has consistently remained relatively high.

The global calcium ammonium nitrate market expanded from a production volume of 88.5 million tons in 2011 to 15 million tons in 2019. In 2018, production was 1.69 times that of 2011, with an average annual growth rate of 8.6% (production in overseas markets includes modified ammonium nitrate).

 

Development Status of Domestic Calcium-Magnesium Fertilizers

 

 

Niu Tianliang analyzed that the development of calcium fertilizers in China started relatively late. Traditional calcium fertilizers include lime, phosphogypsum, single superphosphate, and heavy calcium—these non-water-soluble calcium fertilizers are mainly used to adjust acidic soils and as phosphate fertilizers.

 

 

The inaugural meeting of the Nitro-Calcium-Magnesium Fertilizer Branch of the China Nitrogen Fertilizer Industry Association was held in Taiyuan, Shanxi Province.

 

Calcium nitrate and calcium ammonium nitrate are water-soluble nitrogen-calcium compound fertilizers that are currently the primary calcium-supplementing fertilizers available on the market.

Starting from the 1990s, with changes in the fertilizer structure of China’s nitrogen fertilizer market and the influence of the international market for new types of fertilizers, calcium nitrate and ammonium nitrate-calcium products began to enter China. Consequently, enterprises in Taiyuan, Jiaocheng, Changzhi, and other areas in Shanxi Province—leveraging the nitric acid produced by the former Taiyuan Fertilizer Plant and the Shanxi Fertilizer Plant—started manufacturing products such as calcium nitrate, potassium nitrate, and ammonium nitrate-calcium. At that time, calcium nitrate was primarily exported. Later, these products gradually began to be used in coastal cities across China as well as in economic crops grown in provinces such as Shandong, Hebei, and Henan.

By the beginning of this century, some enterprises had begun to develop and produce calcium ammonium nitrate in response to the demand from both domestic and international markets. In 2003, Xinghua Company of Tianji Group, as well as Wentong Potash Salt and Jiaocheng Hongxing Chemical Company, started developing and conducting pilot production of calcium ammonium nitrate. Subsequently, Wentong Chemical successfully produced the first batch of calcium ammonium nitrate products in China. These products were primarily intended for export.

China is the world’s largest producer of calcium nitrate, with nearly 20 production plants. In 2019, its total production capacity reached nearly 500,000 tons, accounting for 40% of the global total capacity. In recent years, the development of calcium nitrate has been relatively slow, influenced by factors such as investment returns and market demand, as well as the substitution of ammonium nitrate-calcium fertilizers in the fertilizer market. However, since last year, the calcium nitrate market has shown a slight improvement compared to previous periods. A portion of calcium nitrate products is used in industrial markets—for example, as antifreeze additives for concrete in northern winter regions, snow-melting agents, well-cementing agents in oil extraction, odor-control agents for water treatment, and coagulants for latex nitrile gloves, among others. Ammonium nitrate-calcium has seen relatively rapid growth in recent years; by 2019, China’s domestic production capacity for ammonium nitrate-calcium had exceeded 2 million tons. From 1.05 million tons in 2011 to 2.1 million tons in 2019, domestic production of ammonium nitrate-calcium doubled over this period, with an average annual growth rate of 12.5%. Currently, there are 31 enterprises producing ammonium nitrate-calcium in China. This year, four new ammonium nitrate-calcium production facilities are under construction, with a combined capacity of nearly 500,000 tons, and they are expected to begin operations in 2021. Magnesium nitrate is a product that has emerged more recently. Given that there is currently no national standard for agricultural-grade magnesium nitrate in China, it cannot obtain fertilizer registration certificates and can only be used as a raw material for medium-element water-soluble fertilizers. This year, the Standards Committee of the Nitrogen Fertilizer Association has already initiated the development of a national standard for agricultural-grade magnesium nitrate. At present, there are 11 magnesium nitrate production enterprises in China, with a total production capacity of over 200,000 tons.

The export of “two-calcium” products mirrors the domestic market: calcium nitrate has remained largely unchanged in recent years, while calcium ammonium nitrate has seen significant growth. Calcium nitrate production has hovered around 200,000 tons since 2012, up from 50,000 tons in 2003 (212,000 tons in 2018, 198,000 tons in 2019, and 113,000 tons in the first half of this year). Calcium ammonium nitrate rose from 52,700 tons in 2011 to 4.39 million tons in 2018 and 5.33 million tons in 2019, reaching 2.86 million tons in the first half of this year.

 

The Role and Market Prospects of Calcium-Magnesium Fertilizers

 

 

Niu Tianliang stated that nitrate calcium-magnesium fertilizers refer to a class of high-efficiency fertilizers containing nitrate nitrogen and secondary nutrients, such as calcium nitrate, calcium ammonium nitrate, and magnesium nitrate. These fertilizers have excellent water solubility and can be effectively integrated with irrigation and fertilization systems. They also have an ameliorative effect on acidic soils and do not cause soil compaction. With the increasing national emphasis on the development of efficient and environmentally friendly fertilizers and the growing demand for reduced fertilizer use with enhanced efficiency, nitrate calcium-magnesium fertilizers have been rapidly promoted domestically.

From the perspective of the domestic market, the “Guiding Opinions on Promoting the Transformation and Development of the Fertilizer Industry,” released by the Ministry of Industry and Information Technology in 2015, called for encouraging the development of nitro-based compound fertilizers. The “Thirteenth Five-Year Plan for Nitrogen Fertilizer Development,” drafted by the Nitrogen Fertilizer Industry Association, also emphasized the need to focus on improving nitrogen fertilizer utilization efficiency and vigorously promoting the development of new, high-efficiency, and environmentally friendly fertilizers such as modified ammonium nitrate and calcium ammonium nitrate for agricultural use. By 2020, the capacity for producing nitro-based fertilizers was targeted to reach 15 million tons. Moreover, the National Development and Reform Commission’s work plan for reducing fertilizer and pesticide usage also highlighted the importance of accelerating the promotion of nitro-based fertilizers. As national guiding policies are expedited and support measures continue to be strengthened, and as end-users increasingly recognize the advantages of these new, highly efficient compound fertilizers, water-soluble nitro-based fertilizer products such as calcium nitrate, calcium ammonium nitrate, and calcium magnesium nitrate will gradually become hotspots in the future market.

From the perspective of product safety, modified ammonium nitrate for agricultural use and other nitrate-based compound fertilizers have seen increased costs due to the addition of anti-explosion agents, coupled with China's stringent regulatory policies on nitrate-based compound fertilizers. In contrast, calcium ammonium nitrate and calcium magnesium nitrate are classified as ordinary nitrogen-calcium and nitrogen-magnesium compound fertilizers. As a result, the market share of calcium ammonium nitrate and calcium magnesium nitrate fertilizers is expected to grow significantly.

Ammonium nitrate calcium, as an alkaline fertilizer rich in both nitrate nitrogen and calcium, is particularly well-suited for application in acidic soils. It can neutralize soil acidity and improve the soil’s aggregate structure. When magnesium nitrate is applied to the soil, it enhances the soil’s ability to supply magnesium—a key component of chlorophyll in plants and essential for photosynthesis. A magnesium deficiency in plants can disrupt metabolic processes within the plant, with especially severe impacts on the development of young tissues and seed maturation. Thus, applying nitrate-based calcium-magnesium fertilizers not only helps restore soil health but also provides crops with ample nutrients, thereby boosting their growth and efficiency.

In addition, the content of available magnesium in China’s soils generally shows a trend of higher levels in the north and lower levels in the south. The provinces with relatively low levels of available magnesium in China’s soils are mainly concentrated in the central-south region, including Fujian, Jiangxi, Guangdong, Guangxi, Guizhou, Hunan, and Hubei—regions that also happen to be home to a large number of economic crops in China. Therefore, this fact lays a solid foundation for the continued development of nitrocalcium-magnesium fertilizers in these regions.

After nearly 20 years of development, calcium-magnesium fertilizer enterprises have grown from nothing to something and from small to large. The future market prospects for calcium-magnesium fertilizers are promising. In particular, last year, with the care and assistance of the Nitrogen Fertilizer Association and local governments, the Sub-association for Nitro-Calcium-Magnesium Fertilizers was established. This has laid a solid foundation for the industry’s healthy development, paving the way for high-quality growth and transformation and upgrading.

 

The bottlenecks that need to be broken for the healthy development of the calcium-magnesium fertilizer industry.

 

Industry experts say that agriculture has strong demand for nitro-based products, providing robust growth momentum. Nitro-based products are already a mature market segment; the key now is how to increase their market share. Looking at market consumption from 2017 to 2019—a period of three consecutive years—we can see that annual growth has been around 10%, indicating that the product’s market share continues to expand. In addition, calcium-magnesium nitrate fertilizer, as an important nitrogen fertilizer, is widely used in crop production in Western Europe, the United States, Australia, and other regions. Currently, global production capacity exceeds 10 million tons, while China’s capacity for ammonium nitrate-calcium fertilizer stands at approximately 2 million tons. Given China’s drive toward high-quality agricultural development, there is tremendous potential for further growth. The next step should focus on promoting wider adoption and guiding farmers toward scientific consumption practices—this is the key to boosting the product’s market share.

Niu Tianliang stated that, first of all, calcium nitrate and magnesium nitrate have been widely used for many years as fully water-soluble calcium-magnesium fertilizers in agricultural production, and calcium nitrate even holds a fertilizer registration certificate issued by the agricultural authorities. However, in China’s catalog of hazardous chemicals, they are still classified as Class 5.1 hazardous chemicals. Since farmers do not possess licenses for trading hazardous chemicals, this has created problems in the transportation and sale of these products—any inspection by the safety supervision authorities will immediately highlight these issues, while failing to inspect them would seemingly avoid any problems (including exports). This issue should be addressed through communication and resolution among the relevant national departments of agriculture and safety inspection, based on actual circumstances.

Second, the production of calcium ammonium nitrate requires a certain amount of liquid ammonium nitrate, yet most enterprises have to purchase it from the market. In the past, liquid ammonium nitrate with a concentration of 60% to 70% was treated as a typical chemical product. However, in recent years, some local public security and safety supervision authorities have introduced new requirements regarding the use of liquid ammonium nitrate (including licensing for hazardous chemical operations and permits for purchasing civilian explosives and precursors that can be easily used to manufacture explosives). Currently, no domestic authority has issued clear regulations on the safety aspects related to the content of liquid ammonium nitrate. We hope that the relevant authorities will conduct research and provide clear guidelines on this matter.

Third, due to the relatively low technological and financial barriers for domestic calcium-magnesium fertilizer enterprises, their development has been uneven. Most enterprises have low levels of technology in their production facilities as well as poor safety and environmental performance. In particular, in Jiaocheng County over the past few years, nearly twenty enterprises with capacities ranging from 30,000 to 60,000 tons per year have been established. This has led to intense, unhealthy competition in the product market, causing prices to fluctuate wildly and steadily decline. From 1,800 yuan per ton in 2003, prices rose to 2,500 yuan per ton by 2008; from 2010 to 2015, the average price remained roughly between 1,350 and 1,550 yuan per ton; and by October 2016, prices had plummeted to 900 yuan per ton. From 2017 to 2019, prices rebounded to around 1,200 yuan per ton.

 

 

Since the beginning of this year, due to the impact of the pandemic, the production and sales prices of calcium-magnesium fertilizers have dropped to around 1,100 yuan per ton. Not only are manufacturers now enjoying very slim profits, but even distributors are struggling to turn a profit. If this trend continues, the calcium-magnesium fertilizer industry will fall into a vicious cycle and gradually decline. Addressing this issue is precisely what motivates most of our companies to actively call for the establishment of a Calcium-Magnesium Fertilizer Branch Association. Jiaocheng County boasts a relatively strong industrial foundation in nitrocalcium fertilizers, and we have both the responsibility and the obligation to step up, take the lead, and set an example. To this end, we need to unite closely and reach a common understanding. Under the leadership of the China Nitrogen Fertilizer Association, we must fully leverage the Calcium-Magnesium Fertilizer Branch Association’s role as a bridge and link, and through integration and innovation, contribute our ideas and suggestions to the high-quality, healthy development of China’s calcium fertilizers! On one hand, we must continuously enhance the technological sophistication of our production processes; on the other hand, we need to keep developing new products that are uniquely distinctive, paying close attention to product quality and effectiveness. We must keep farmers’ interests at heart and help them make money. By improving product quality and adding value, we can ensure the healthy development of the entire industry.

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