2018 Performance Highlight
International Marketing Aspect And Market Share
The international urea price started 2018 with an upward trend, then slightly downward until the second quarter, ended with a climb on the third to the fourth quarter. generally, the average urea price in 2018 is better than that of 2017.
The increase in global urea production in 2018 at 170.4 million tonnes is more than that of 2017 at 168.6 million tonnes, followed by an increase in urea consumption in 2018 at 171 million tonnes – also higher than that of 2017 at 168.8 million tonnes. However, perceiving from the international trade aspect, there was a drop in global export in 2018 48.8 million tonnes compared to that of 2017 at 49.1 million tonnes. The drop is due to reduced supply from china since 2017.
From the realisation of exported urea in 2018 at 786 thousand tonnes, the largest market share is in southeast asia, where the company has a competitive advantage in a form of regional proximity and asean Free trade area (aFta) agreement between asean countries in a form of duty-free area. the largest market share is the Philippines at 299 thousand tonnes or 38% of the total sales and vietnam at 197 thousand tonnes or 25% of the total sales.
On the other hand, the year 2018 showed an adjustment to the new ammonia sales flow and changes in requests from each region encouraged by ammonia supply due to two biggest ammonia projects that have been completed (BasF/yara Jv and Pau). the three main ammonia suppliers in indonesia that are seeking to enlarge its capacity are Pau (commissioning on Q2 of 2018 and first export in July 2018), Petrokimia gresik, and Pupuk Kujang in Indonesia.
Fertecon ammonia outlook december of 2018 showed that the world ammonia consumption throughout 2018 was 179 million tonnes and climbed to 183.7 million tonnes in 2020. the world installed ammonia production has also escalated from 249 million tonnes in 2018 into 254 million tonnes in 2020.
Domestic Marketing Aspect And Market Share
In the domestic market share, from the nonsubsidised urea sales realisation in 2018 of 1.17 million tonnes, the largest market share is in Kalimantan with a total sales of 457 thousand tonnes or 39% of the total sales as well as Java with 343 thousand tonnes or 31% of the total sales. This is possible because Pupuk Kaltim is able to take advantage of the location proximity with the regions to become a competitive advantage. meanwhile, in Java, particular east Java, many industries use urea as a raw material. Pupuk Kaltim also continues to penetrate the sumatran market where there are many palm plantations, both through warehouses in dumai and medan or spot sales in Bontang warehouse, earning a total sales of 311 thousand tonnes or 27% of the total sales.
The same thing occurs in NPK sales where the largest market share is in Java and Kalimantan. The total sales in 2018 for non-subsidised NPK is 26.52 thousand tonnes. the sales to east Kalimantan is the biggest portion with a total of 10.6 thousand tonnes or 40% of the total sales, while the sales to east Java is 5.5 thousand tonnes or 21% of the total sales.
2017 Performance Highlight
2016 Performance Highlight
2015 Performance Highlight