Economy 2024-06-15T05:17:25+03:00
Ukrainian news
Ostchem Increases Capacity Utilization And Reduces Mineral Fertilizer Prices

Ostchem Increases Capacity Utilization And Reduces Mineral Fertilizer Prices

Group DF, OSTCHEM, mineral fertilizers, Ostchem holding

The Ostchem nitrogen holding has increased capacity utilization and reduced mineral fertilizer prices.

This is stated in the message of the Group DF group, which incorporates Ostchem, Ukrainian News Agency reports.

"Ostchem has increased the capacity utilization of two mineral fertilizer plants. In particular, Cherkasy Azot increased its load from 30% to 70%. At the moment, workshops for the production of ammonia, ammonium nitrate, urea are operating. In turn, Rivneazot increased its capacity to 50% by launching an ammonia shop, an ammonium nitrate and limestone-ammonium nitrate shop. The increase in production is primarily due to a surge in seasonal demand for mineral fertilizers for farmers on the eve of spring sowing," the report said.

It is noted that the plants close a niche formed against the background of a reduction in the supply of mineral fertilizers to Ukraine by importers.

"This is a planned increase in the production load of our plants. We are increasing capacity to close the demand from farmers, who against all odds are determined to successfully carry out spring sowing. In the spring, more than 70% of all fertilizers are introduced, February and March are the peak of demand. All necessary workshops work," said Serhii Pavliuchuk, head of the nitrogen business of the holding.

It is noted that the seasonal increase in demand for fertilizers and the scale of production, as well as the correction of gas prices, made it possible for Ostchem to significantly reduce the cost of fertilizers.

In particular, since February 1, retail prices for the most demanded mineral fertilizers, excluding delivery, have decreased by UAH 2,000 to UAH 35,000 per ton, for urea - to UAH 36,000 per ton, for LAN (lime-ammonium nitrate) - to UAH 27,000 per ton.

At the same time, the price of UAM (urea-ammonia mixture decreased by UAH 4,000, and today it can be purchased for UAH 29,000 per ton of products.

"Preparation for spring sowing is carried out under the influence of two interdependent factors. First, farmers did not form a sufficient supply of mineral fertilizers. Second - farmers until the last moment postpone the decision to buy. Thus, we see the delayed demand of farmers for products: if earlier fertilizers for the spring sowing season were purchased in September-December, now the peak demand is transferred to December-March. This means that the burden on OSTCHEM's production facilities during this period will be enormous and those farmers who provided themselves with products in advance will unconditionally win," Oleh Arestarkhov, head of Group DF's corporate communications department, was quoted as saying.

He noted that the postponement of deadlines is associated with military risks, as well as with a longer process of selling products by farmers.

As Ukrainian News Agency earlier reported, in 2022, Ostchem enterprises reduced their production of mineral fertilizers by 66.9% to 1,754 million tons compared to 2021.