Cost curves provide insight into which production technologies and feedstocks are cost advantageous, the degree of the advantage and how this is expected to change over time. Find out which are the lowest-cost regions, countries and plants, both today and in the future. Identify the marginal producing location and how this affects pricing. Understand how the shape of the cost curve affects overall and regional profitability for this key building block of the chemical industry.
Capital investments in Ammonia production units in recent years have focused on Middle Eastern countries, due to advantaged feedstock costs, or areas such as China with rapid demand growth. The current and planned development of numerous shale gas fields in the United States is forecast to supply extremely cost-competitive feedstocks compared to most other regions, so global producers are again considering North America as an investment option because of the favorable feedstock position and the stable investment environment.
The Cost Curve Service – Ammonia analyzes each of the world’s production facilities, building up cost based on the technology and feedstock slate, estimated feedstock cost and by-product credit value, utility consumption and other variable and plant fixed costs. Plant size and operating rates are all taken into account.
The cost curve covers all of the key processes for producing ammonia, including:
Any person, company or government interested in producing or purchasing ammonia, or designing or constructing ammonia plants, should be aware of the competitive positions within the global Ammonia industry. Chemical, utilizing its extensive databases, models and expertise, has prepared the Cost Curve Service to address this need.